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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

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