A company issues 1,000 shares of $1 par value common stock for $50,000. The journal entry includes

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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.