Question

Simon Company issued 10,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include a. a debit to Cash for €20,000 b. a credit to Share Capital-Ordinary for €110,000 c. a debit to Retained Earnings for €27,500 d. a credit to Share Premium-Ordinary for €90,000

Name: simon company issued 10000 shares of 2 par value ordinary shares for 11 per share the journal entry to record the sale will include a a debit to cash for 20000 b a credit to share capital ordinary for
Uploaded: 2023-05-10T21:23:33-08:00
Duration: 1 min 53 s
Channel: Bryan Kim
Description: simon company issued 10000 shares of 2 par value ordinary shares for 11 per share the journal entry to record the sale will include a a debit to cash for 20000 b a credit to share capital ordinary for

          Simon Company issued 10,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include
a. a debit to Cash for €20,000
b. a credit to Share Capital-Ordinary for
€110,000
c. a debit to Retained Earnings for
€27,500
d. a credit to Share Premium-Ordinary for €90,000

Added by Muhammad Faris S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Bryan Kim

05/10/2023

Step 1

First, we need to calculate the total cash received from the sale of shares. Since there were 10,000 shares issued at €11 per share, the total cash received is 10,000 * €11 = €110,000. So, there will be a debit to Cash for €110,000. Show more…

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Simon Company issued 10,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include a. a debit to Cash for €20,000 b. a credit to Share Capital-Ordinary for €110,000 c. a debit to Retained Earnings for €27,500 d. a credit to Share Premium-Ordinary for €90,000