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 |