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, and the company paid an underwriter $500 in stock issue costs. What is the journal entry required to record the issuance of the shares?
A)
Cash
19,500
Common Stock—$2 par
3,000
Addl. Paid-in-Capital in Excess of Par—Common
16,500
B)
Cash
19,500
Common Stock—$2 par
2,500
Addl. Paid-in-Capital in Excess of Par—Common
17,000
C)
Cash
19,000
Common Stock—$2 par
3,000
Addl. Paid-in-Capital in Excess of Par—Common
16,000
D)
Cash
19,000
Common Stock—$2 par
2,500
Addl. Paid-in-Capital in Excess of Par—Common
16,500
Answer: C
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