A Corporation Issued 5,000 Shares of Its No Par Common

Multiple Choice

A corporation issued 5,000 shares of its no par common stock having a $1 stated value per share. The issue price was $10 per share. The entry to record this transaction would be:

A) Debit Cash $50,000; credit Paid-in Capital in Excess of Par Value, Common Stock $45,000; credit Common Stock $5,000.
B) Debit Cash $50,000; credit Common Stock $50,000.
C) Debit Common Stock $50,000; credit Cash $50,000.
D) Debit Treasury Stock $50,000; credit Cash $50,000.
E) Debit Common Stock $25,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $45,000.