Olsson Corporation Received a Check from Its Underwriters for $72

Multiple Choice

Olsson Corporation received a check from its underwriters for $72 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $72 per share. Which is the correct entry to record the issue of the stock?

A)
B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 72,000,000 & \\\hline \text { Deferred stock issue revenue } & & 20,000,000 \\\hline \text { Common stock } & & 5,000,000 \\\hline \text { Paid-in capital\_excess of par } & & 47,000,000 \\\hline\end{array}$
C) $\begin{array}{|l|l|l|}\hline \text { Cash } & 72,000,000 & \\\hline \text { Common stock } & & 72,000,000 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Cash } & 72,000,000 & \\\hline \text { Common stock } & & 5,000,000 \\\hline \text { Paid-in capital\_excess of par } & & 67,000,000 \\\hline\end{array}$