{"id":34586,"date":"2024-01-22T08:18:15","date_gmt":"2024-01-22T08:18:15","guid":{"rendered":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586"},"modified":"2024-01-22T08:18:15","modified_gmt":"2024-01-22T08:18:15","slug":"a-company-sells-10000-shares-of-previously-authorized-stock-at-the-par-value-of-10-per-share-what-is-the-correct-entry-to-record-the-transaction","status":"publish","type":"post","link":"https:\/\/www.greatassignmenthelp.com\/questions\/a-company-sells-10000-shares-of-previously-authorized-stock-at-the-par-value-of-10-per-share-what-is-the-correct-entry-to-record-the-transaction\/","title":{"rendered":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?"},"content":{"rendered":"

Question:<\/b> a company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?<\/p>\n

Debit cash $10,000, credit capital stock $10,000<\/p>\n

Debit capital stock $100,000, credit cash $100,000<\/p>\n

Debit cash $100,000, credit capita $100,000<\/p>\n

Debit cash $100,000, credit treasury stock $100,000<\/p>\n

Debit cash $10, credit capital stock $10<\/p>\n

 <\/p>\n

Answer: 3. Debit cash $100,000, credit capita $100,000<\/h2>\n

This is the correct entry because:<\/p>\n

A transaction in which previously authorized shares of stock are issued by a company is recorded through debiting cash (or receivables) for the value received as well as crediting capital stock accounts to reflect par values.<\/p>\n

In this example, the firm sold 100,000 shares for $1 per share with a par value of $1. The amount received in cash would also be $100, 000 (Quizlet, Inc., 2024).<\/p>\n

Therefore, the correct entry is:<\/p>\n\n\n\n\n\n\n
\n

Date<\/p>\n<\/td>\n

\n

Particulars<\/p>\n<\/td>\n

\n

Debit ($)<\/p>\n<\/td>\n

\n

Credit ($)<\/p>\n<\/td>\n<\/tr>\n

\n

18th<\/sup> January 2021<\/p>\n<\/td>\n

\n

Cash<\/p>\n<\/td>\n

\n

100,000<\/p>\n<\/td>\n

<\/td>\n<\/tr>\n
<\/td>\n\n

Common shares<\/p>\n<\/td>\n

<\/td>\n\n

100,000<\/p>\n<\/td>\n<\/tr>\n

<\/td>\n\n

To record the shares issues<\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

This records cash received from the issuance of stock and par value of shares issued to capital. The number of shares issued has no significance on the dollars reflected. The par value is recorded in the capital stock as it acts not only on a benefit basis but also as legal claim of the company.<\/p>\n","protected":false},"excerpt":{"rendered":"

Question: a company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nA company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?\" \/>\n<meta property=\"og:description\" content=\"Question: a company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\" \/>\n<meta property=\"og:site_name\" content=\"Questions - Greatassignmenthelp.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Greatassignmenthelpus\" \/>\n<meta property=\"article:published_time\" content=\"2024-01-22T08:18:15+00:00\" \/>\n<meta name=\"author\" content=\"Jay Cooper\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@assignmentgreat\" \/>\n<meta name=\"twitter:site\" content=\"@assignmentgreat\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jay Cooper\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\"},\"author\":{\"name\":\"Jay Cooper\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/3a1b105fd8c3db97e016fb16652b9b3e\"},\"headline\":\"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?\",\"datePublished\":\"2024-01-22T08:18:15+00:00\",\"dateModified\":\"2024-01-22T08:18:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\"},\"wordCount\":220,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#organization\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\",\"url\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\",\"name\":\"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?\",\"isPartOf\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#website\"},\"datePublished\":\"2024-01-22T08:18:15+00:00\",\"dateModified\":\"2024-01-22T08:18:15+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.greatassignmenthelp.com\/questions\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#website\",\"url\":\"https:\/\/www.greatassignmenthelp.com\/questions\/\",\"name\":\"Questions - Greatassignmenthelp.com\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.greatassignmenthelp.com\/questions\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#organization\",\"name\":\"greatassignmenthelp\",\"url\":\"https:\/\/www.greatassignmenthelp.com\/questions\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.greatassignmenthelp.com\/questions\/wp-content\/uploads\/2022\/06\/logo-footer.png\",\"contentUrl\":\"https:\/\/www.greatassignmenthelp.com\/questions\/wp-content\/uploads\/2022\/06\/logo-footer.png\",\"width\":159,\"height\":52,\"caption\":\"greatassignmenthelp\"},\"image\":{\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Greatassignmenthelpus\",\"https:\/\/x.com\/assignmentgreat\",\"https:\/\/www.pinterest.com\/greatassignment\/\",\"https:\/\/www.linkedin.com\/company\/great-assignment-help\/\",\"https:\/\/www.instagram.com\/greatassignmenthelp\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/3a1b105fd8c3db97e016fb16652b9b3e\",\"name\":\"Jay Cooper\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/90b1a211fe4bf64a5776d70d26f75d0f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/90b1a211fe4bf64a5776d70d26f75d0f?s=96&d=mm&r=g\",\"caption\":\"Jay Cooper\"},\"sameAs\":[\"https:\/\/www.greatassignmenthelp.com\/questions\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586","og_locale":"en_US","og_type":"article","og_title":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?","og_description":"Question: a company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record […]","og_url":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586","og_site_name":"Questions - Greatassignmenthelp.com","article_publisher":"https:\/\/www.facebook.com\/Greatassignmenthelpus","article_published_time":"2024-01-22T08:18:15+00:00","author":"Jay Cooper","twitter_card":"summary_large_image","twitter_creator":"@assignmentgreat","twitter_site":"@assignmentgreat","twitter_misc":{"Written by":"Jay Cooper","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#article","isPartOf":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586"},"author":{"name":"Jay Cooper","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/3a1b105fd8c3db97e016fb16652b9b3e"},"headline":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?","datePublished":"2024-01-22T08:18:15+00:00","dateModified":"2024-01-22T08:18:15+00:00","mainEntityOfPage":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586"},"wordCount":220,"commentCount":0,"publisher":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#organization"},"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586","url":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586","name":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?","isPartOf":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#website"},"datePublished":"2024-01-22T08:18:15+00:00","dateModified":"2024-01-22T08:18:15+00:00","breadcrumb":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=34586#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.greatassignmenthelp.com\/questions\/"},{"@type":"ListItem","position":2,"name":"A company sells 10,000 shares of previously authorized stock at the par value of $10 per share. What is the correct entry to record the transaction?"}]},{"@type":"WebSite","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#website","url":"https:\/\/www.greatassignmenthelp.com\/questions\/","name":"Questions - Greatassignmenthelp.com","description":"","publisher":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.greatassignmenthelp.com\/questions\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#organization","name":"greatassignmenthelp","url":"https:\/\/www.greatassignmenthelp.com\/questions\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/logo\/image\/","url":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-content\/uploads\/2022\/06\/logo-footer.png","contentUrl":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-content\/uploads\/2022\/06\/logo-footer.png","width":159,"height":52,"caption":"greatassignmenthelp"},"image":{"@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Greatassignmenthelpus","https:\/\/x.com\/assignmentgreat","https:\/\/www.pinterest.com\/greatassignment\/","https:\/\/www.linkedin.com\/company\/great-assignment-help\/","https:\/\/www.instagram.com\/greatassignmenthelp"]},{"@type":"Person","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/3a1b105fd8c3db97e016fb16652b9b3e","name":"Jay Cooper","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.greatassignmenthelp.com\/questions\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/90b1a211fe4bf64a5776d70d26f75d0f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/90b1a211fe4bf64a5776d70d26f75d0f?s=96&d=mm&r=g","caption":"Jay Cooper"},"sameAs":["https:\/\/www.greatassignmenthelp.com\/questions"]}]}},"_links":{"self":[{"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/posts\/34586"}],"collection":[{"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/comments?post=34586"}],"version-history":[{"count":0,"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/posts\/34586\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/media?parent=34586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/categories?post=34586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.greatassignmenthelp.com\/questions\/wp-json\/wp\/v2\/tags?post=34586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}