Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

A company sells 10000 shares of previously authorized stock at the par value of $10 per share.

Sagot :

luisvaschetto

The correct entry is Debit capital stock $100,000, and credit cash $100,000. It is the maximum number of shares that a company/industry is legally authorized to issue.

What is capital stock?

Capital stock refers to the maximum number of shares that a given company is legally authorized to issue.

In this case, the number of shares sold is equal to 10,000, whereas the par value is equal to $10 per share.

In consequence, the entry to record this stock is Cash equal to $100,000, common Stock equal to $100,000.

Learn more about capital stock here:

https://brainly.com/question/1166179

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.