Firelog Company Began Business on July 1,20X8,by Selling 1,000 Shares

Multiple Choice

Firelog Company began business on July 1,20X8,by selling 1,000 shares of $1 par value capital stock at $20 per share.The effect of this transaction on Firelog Company would be to

A) increase the capital stock at par account by $20,000 and increase the cash account by $20,000.
B) increase the capital stock at par by $20,000 and decrease the cash account by $20,000.
C) decrease the capital stock at par by $20,000 and increase the cash account by $20,000.
D) increase the capital stock at par by $1,000,increase the paid-in capital in excess of par account by $19,000,and increase the cash account by $20,000.
E) decrease the capital stock at par by $1,000,decrease the paid-in capital in excess of par account by $19,000,and increase the cash account by $20,000.