If 500 shares of $10 par value common stock are sold for $40 per share, the entry would be a debit to cash for $20,000 and credit, which of the following accounts and amounts?
a. common stock for $20,000
b. common stock $5,000; additional paid-in-capital-common stock $15,000
c. common stock $15,000; retained earnings $5,000
d. retained earnings $15,000; common stock $5,000
Ans: b. common stock $5,000; additional paid-in-capital-common stock $15,000
Business
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Business
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