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El Paso Co. decides to incorporate and sells stock. The company sells 10,000 shares of $10 par value common stock for $25 per share. What
El Paso Co. decides to incorporate and sells stock. The company sells 10,000 shares of $10 par value common stock for $25 per share. What is the journal entry to record this transaction?
| a. | Dr: Cash $250,000 Cr: Common Stock $100,000 Cr: Paid-in Capital in Excess of Par - Common $150,000 | |
| b. | Dr: Cash $250,000 Cr :Owners Equity $250,000 | |
| c. | Dr: Cash $250,000 Cr: Common Stock $250,000 | |
| d. | Dr: Cash $250,000 Cr: Preferred Stock $250,000 |
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