Osbourne Company Issued 50,000 Shares of Common Stock in Exchange

Multiple Choice

Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment. The equipment has a fair value of $1,000,000. The stock has par value of $0.01 per share. Which of the following is included in the journal entry to record this transaction?

A) debit Cash $5,000
B) credit Gain on Sale of Common Stock $1,050,000
C) credit Paid-In Capital in Excess of Par-Common $999,500
D) credit Common Stock-$0.01 Par Value $1,000,000