(Solution) A company sells 10,000 shares of previously authorized stock

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A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What’s the correct entry to record the transaction? Debit cash $10, credit capital stock $10 Debit cash $100,000, credit capital stock $100,000 Debit cash $10,000, credit capital stock $10,000 Debit cash $100,000, credit treasury stock $100,000 Debit capital stock $100,000, credit cash $100,000

Solution

When stock is sold then cash is received and stock is released so, journal entry to record this transaction is

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