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Mustang Company recently issued 1,000 shares of its $10 par common stock in satisfaction of its outstanding debt of $25,000 to MST Compnay. The journal
Mustang Company recently issued 1,000 shares of its $10 par common stock in satisfaction of its outstanding debt of $25,000 to MST Compnay. The journal entry to record this transaction would include:
a. credit paid in capital in excess of par $10,000
b. debit accounts payable $25,000
c. debit common stock $10,000
d. credit cash $25,000
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