C is corrent. At issuance, the issuer makes only a memorandum entry indicating the number and price at which the shares may be purchased. Upon exercise, the company receives the cash and makes the following entry:
| Cash |
(proceeds) |
|
| Common stock |
|
(par value) |
| APIC |
|
(plug) |
A is incorrect. At issuance, the issuer makes only a memorandum entry indicating the number and price at which the shares may be purchased. Upon exercise, the company receives the cash and makes the following entry:
| Cash |
(proceeds) |
|
| Common stock |
|
(par value) |
| APIC |
|
(plug) |
B is incorrect. At issuance, the issuer makes only a memorandum entry indicating the number and price at which the shares may be purchased. Upon exercise, the company receives the cash and makes the following entry:
| Cash |
(proceeds) |
|
| Common stock |
|
(par value) |
| APIC |
|
(plug) |
D is incorrect. At issuance, the issuer makes only a memorandum entry indicating the number and price at which the shares may be purchased. Upon exercise, the company receives the cash and makes the following entry:
| Cash |
(proceeds) |
|
| Common stock |
|
(par value) |
| APIC |
|
(plug) |
