Transcribed Image Text: A company has an authorized capital of 10,000 common shares of $10 par value and 7,500

Transcribed Image Text: A company has an authorized capital of 10,000 common shares of $10 par value and 7,500
common shares are outstanding. During the year, the company issued 1,000 common
shares of $10 par value at $15 per share. A journal entry is recorded to debit the Cash
account by $15,000. Show the credit side of the journal entry?
a. Credit Common stock account for $15,000
b. Credit Common stock account for $10,000 and Paid-in capital in-excess of Stated
value account for $5,000
c. Credit Common stock account for $10,000 and Retained earnings account for
$5,000
d. Credit Common stock account for $10,000 and Paid-in capital in-excess of Par
value account for $5,000

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