Question

A corporation issues 2,000 shares of common stock for $32,000. The stock has a stated value of $12 per share. The journal entry to record the stock issuance would include a credit to Common Stock for
a. $2,000.b. $32,000.c. $12,000.d. $24,000.Feedback: Correct. The common stock account is credited for the number of shares times the stated value per share (2,000 × $12 = $24,000).

Answer 1

Answer:

It is $24,000 (D)

Explanation:

The nominal value of shares issued will be credited to common stock  $24,000 ( $12 ×2000).

Hence, premium on share issued of $8000 will be credited to share premium account.

Total cash received will be debited to Bank or cash Account -$32,000.