TB MC Qu. 18-51 (Algo) Olsson Corporation received...

Olsson Corporation received a check from its underwriters for $80 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $80 per share. Which is the correct entry to record the issue of the stock?

Multiple Choice

• Cash	80,000,000
  Common stock		5,000,000
  Paid-in capitalexcess of par		75,000,000

• Cash	80,000,000
  Common stock		80,000,000

• Cash	80,000,000
  Stock issue expense		24,000,000
  Stock contract receivable		56,000,000

• Cash	80,000,000
  Deferred stock issue revenue		24,000,000
  Common stock		5,000,000
  Paid-in capitalexcess of par		51,000,000