A company issues 1,000 shares of $1 par value common stock for $50,000. The journal entry includes
A company issues 1,000 shares of $1 par value common stock for $50,000. The journal entry includes:
A. Debit Cash $50,000, Credit Common Stock $1,000, Credit Additional Paid-In Capital $49,000
B. Debit Cash $50,000, Credit Common Stock $50,000
C. Debit Cash $50,000, Credit Common Stock $1,000, Credit Retained Earnings $49,000
D. Debit Cash $50,000, Credit Additional Paid-In Capital $50,000
Answer: A
Explanation: Par value = $1 × 1,000 = $1,000. APIC = $50,000 – $1,000 = $49,000.

