Please the options provided are not correct for the question given.
Answer: When a company issued 32,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include a debit to cash for $640,000 , a credit to common stock and Additional paid in capital for $64,000 and $576,000 respectively.
Explanation:
Company issued = 32,000 shares
For par value = $2
Common stock for = $20 per share
The Journal Entry would be,
Accounts title and explanation Debit Credit
Cash ($32,000 shares x $20) $640,000
Common Stock (32,000 shares x $2) $64,000
Additional paid-In capital in excess par—common stock $576,000 ($640,000 - $64,000)
