under-gaap-a-company-issues-10000-shares-at-10-each-with-a-par-value-of-1-how-sh

Question

Under GAAP, a company issues 10,000 shares at $$10 each with a par value of 1. $$How should this transaction be recorded?

Accepted Answer

Credit common stock $$10,000 and additional paid-in capital 90$$,000.

Answer

Credit common stock $$10,000 and retained earnings 90$$,000.

Answer

Credit additional paid-in capital $100,000 and no common stock.

Answer

Credit common stock $100,000 with no additional paid-in capital.

Under GAAP, a company issues 10,000 shares at \$10 each with a par value of \$1. How should this transaction be recorded?