S & C Company issues 1,500 shares of common stock with a $2 par value. The issue price of the stock is $13 per share. What is the journal entry required to record the issuance of the shares?
A)
Cash
3,000
Common Stock
3,000
B)
Cash
19,500
Common Stock—$2 par
3,000
Addl. Paid-in-Capital in Excess of Par—Common
16,500
C)
Cash
19,500
Common Stock -$2 par
1,500
Addl. Paid-in-Capital in Excess of Par—Common
18,000
D)
Cash
19,500
Common Stock
19,500
Answer: B
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