The Bean Counter Corporation received subscriptions for 100 shares of its $12 par value common stock at $15 per share. The entry to record receipt of the subscriptions would include a:
A) debit to Cash $1,500 and a credit to Common Stock $1,500.
B) debit to Cash $1,500; a credit to Common Stock $1,200; and a credit to Paid-in Capital in Excess of Par Value—Common $300.
C) debit to Common Stock Subscribed $1,500 and a credit to Subscriptions Receivable-Common Stock $1,500.
D) debit to Subscriptions Receivable—Common Stock $1,500; a credit to Common Stock Subscribed $1,200; and a credit to Paid-in Capital in Excess of Par Value—Common for $300.
Answer: D
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