Suppose Value Home and Garden Imports issued 400,000 shares of $0.10 par common stock at $4 per share. Which journal entry correctly records the issuance of this stock?
|
a. |
Common stock |
1,600,000 |
|
|
|
Cash |
|
40,000 |
|
|
Paid in capital in excess of par—common |
|
1,560,000 |
|
b. |
Common stock |
1,600,000 |
|
|
|
Cash |
|
1,600,000 |
|
c. |
Cash |
1,600,000 |
|
|
|
Common stock |
|
40,000 |
|
|
Paid in capital in excess of par—common |
|
1,560,000 |
|
d. |
Cash |
1,600,000 |
|
|
|
Common stock |
|
1,600,000 |