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Answer the following question: Kentucky Incorporated is authorized to issue 20,000 common shares. During the year it sold and issued 5,000 common shares for $10
Answer the following question:
Kentucky Incorporated is authorized to issue 20,000 common shares. During the year it sold and issued 5,000 common shares for $10 cash per share. What will be the correct entry to record this transaction?
a) Debit cash $50,000; debit share receivable $150,000; credit common shares $200,000
b) Debit cash $200,000; credit common shares $200,000
c) Debit cash $50,000; credit common shares $50,000
d) Debit cash $50,000; credit retained earnings $50,000
e) Debit cash $50,000; credit contributed surplus $50,000
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