Justin corp. issues 10,000 shares of $1 par value common stock for $5 per share. the journal entry to record this transaction will include which of the following? (check all that apply.)

The record of the issuance of the stock is debit to cash for $50,000, credit to common stock for $10,000 and credit to excess of common stock of $40,000.

Explanation:

A. Entries of the stock

1. Account(cash)

Cash=10,000 shares at $5 per share

Cash=10,000×5=$50,000

Cash to Debit=$50,000

Credit this account=$0

2. Account (common stock)

Common stock=10,000 shares at $1 per value common stock

Common stock=10,000×1=$10,000

Credit account=$10,000

Debit this account=$0

3. Account (Paid-in Capital in Excess of Par - Common Stock)

Paid in capital in excess of par-common stock=50,000-10,000=$40,000

Credit this account=$40,000

Debit this account=$0

This can be written as;

Account                                                Debit ($)                         Credit ($)

Cash (10,000 shares×$5 price)           50,000  

Common Stock (10,000 shares×$1 par)                                     10,000

Paid-in Capital in Excess of Par - Common Stock                     40,000

The record of the issuance of the stock is debit to cash for $50,000, credit to common stock for $10,000 and credit to excess of common stock of $40,000.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.