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Question
When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,500 shares of stock at a price of $16 per share.
The journal entry for this transaction would include a
a. debit to Cash for $85,000
b. credit to Common Stock for $136,000
c. credit to Paid-In Capital in Excess of Par—Common Stock for $51,000
d. debit to Common Stock for $85,000
Answer
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