Evenrude Corporation is a new company about to issue stock. The corporation sells 2,000 shares of common stock (par value $2) at $10 per share. The journal entry to record this transaction is:
a. Cash 2,000
Common Stock 2,000
b. Cash 20,000
Common Stock 4,000
Additional Paid-in Capital 16,000
c. Cash 20,000
Owners' Liability 16,000
Common Stock 4,000
d. Cash 20,000
Accounts Payable 20,000
e. Cash 20,000
Notes Payable 20,000
B
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