{"id":6277,"date":"2024-04-23T10:31:44","date_gmt":"2024-04-23T10:31:44","guid":{"rendered":"https:\/\/assignmenttask.com\/answers\/?p=6277"},"modified":"2024-04-23T10:31:44","modified_gmt":"2024-04-23T10:31:44","slug":"solved-question-a-company-sells-10000-shares-of-previously-authorized-stock-at-the-par-value-of-10-per-share","status":"publish","type":"post","link":"https:\/\/assignmenttask.com\/answers\/solved-question-a-company-sells-10000-shares-of-previously-authorized-stock-at-the-par-value-of-10-per-share\/","title":{"rendered":"Solved Question A Company Sells 10,000 Shares Of Previously Authorized Stock At The Par Value Of $10 Per Share"},"content":{"rendered":"<h2><strong>A Company Sells 10,000 Shares Of Previously Authorized Stock At The Par Value Of $10 Per Share. What\u2019s the correct entry to record the transaction?<\/strong><\/h2>\n<blockquote><p>Are you searching for an expert for <a href=\"https:\/\/assignmenttask.com\/answers\/\"><strong>Assignment Questions &amp; Answers<\/strong><\/a>? Don\u2019t worry about it! Our professional team at <a href=\"https:\/\/assignmenttask.com\/\"><strong>Assignment Task<\/strong><\/a> provides you with top-quality <a href=\"https:\/\/assignmenttask.com\/assignment-writing-help.html\"><strong>assignment writing services<\/strong><\/a> at the best price. Get 100% plagiarism-free work from our <a href=\"https:\/\/assignmenttask.com\/experts\"><strong>assignment expert<\/strong><\/a> with round-the-clock service. Order now!<\/p><\/blockquote>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.assignmenttask.com\/order-now.php\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-1261 size-full lazyload\" data-src=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2019\/04\/Order-Your-Assignment.jpg\" alt=\"Order-Your-Assignment\" width=\"600\" height=\"150\" data-srcset=\"https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2019\/04\/Order-Your-Assignment.jpg 600w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2019\/04\/Order-Your-Assignment-300x75.jpg 300w, https:\/\/assignmenttask.com\/answers\/wp-content\/uploads\/2019\/04\/Order-Your-Assignment-360x90.jpg 360w\" data-sizes=\"(max-width: 600px) 100vw, 600px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 600px; --smush-placeholder-aspect-ratio: 600\/150;\" \/><\/a><\/p>\n<ol>\n<li>\u00a0Debit cash $10,000, credit capital stock $10,000<\/li>\n<li>\u00a0Debit capital stock $100,000, credit cash $100,000<\/li>\n<li>\u00a0Debit cash $100,000, credit capita 11 stock $100,000<\/li>\n<li>\u00a0Debit cash $100,000, credit treasury stock $100,000<\/li>\n<li>\u00a0Debit cash $10, credit capital stock $10<\/li>\n<\/ol>\n<h3><strong>Answer: 1: Debit cash $10,000, credit capital stock $10,000<\/strong><\/h3>\n<p><strong>Explanation:<\/strong><\/p>\n<p>If a company sells the approved shares at the par value, the accounting entry reflects a debit of Cash Account for the sales amount and credit of the Capital Stock for the par value of the authorized shares issued.<\/p>\n<p>Given:<\/p>\n<p>Number of shares sold: One day there are 10,000.<\/p>\n<p>Par value per share: Imagine that you have landed into a universe that is totally different from the one you are living in. This is the very moment that you have been separated from all human beings.<\/p>\n<p>Calculations:<\/p>\n<p>The total revenue from the sale of the shares equaled to 10,000 shares x 10 dollars per share = $100,000.<\/p>\n<p>Value of Papers Issued = Stocks Available \u00d7 $10\/Share =$100,000.<\/p>\n<p>Accounting Entry:<\/p>\n<p>Debit Cash $100,000<\/p>\n<p>Credit Capital Stock $100,000<\/p>\n<p>Since the question asks for the correct entry to record the transaction, the appropriate option is:<\/p>\n<p>Asset: Debit cash balance $10,000 Credit capital stock account $10,000.<\/p>\n<p>This section comprised of 10,000 shares at a par value of $10 per share was sold with $100000 in cash.<\/p>\n<p>The other options are incorrect because: The other options are incorrect because:<\/p>\n<ol start=\"2\">\n<li>Invest: $100,000 in the means of production; cash: $100,000 (why?) (reverses the correct entry)<\/li>\n<li>Debit cash $100,000; credit capital stock $100,000 (consistently wrong)<\/li>\n<li>To debit $100,000 cash and credit $100,000 (treasury stock, which is not part of the transaction),<\/li>\n<li>Debit cash account $10 and capital stock $10 (incorrect amounts)<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Company Sells 10,000 Shares Of Previously Authorized Stock At The Par Value Of $10 Per Share. What\u2019s the correct entry to record the transaction? Are you searching for an expert for Assignment Questions &amp; Answers? Don\u2019t worry about it! Our professional team at Assignment Task provides you with top-quality assignment writing services at the best price. Get 100% plagiarism-free work from our assignment expert with round-the-clock service. Order now! \u00a0Debit cash $10,000, credit capital stock $10,000 \u00a0Debit capital stock $100,000, credit cash $100,000 \u00a0Debit cash $100,000, credit capita 11 stock $100,000 \u00a0Debit cash $100,000, credit treasury stock $100,000 \u00a0Debit <a href=\"https:\/\/assignmenttask.com\/answers\/solved-question-a-company-sells-10000-shares-of-previously-authorized-stock-at-the-par-value-of-10-per-share\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[729],"tags":[],"class_list":["post-6277","post","type-post","status-publish","format-standard","hentry","category-assignment-answers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Solved Question A Company Sells 10,000 Shares Of Previously Authorized Stock At The Par Value Of $10 Per Share<\/title>\n<meta name=\"description\" content=\"A Company Sells 10,000 Shares Of Previously Authorized Stock At The Par Value Of $10 Per Share. 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