A company made an issue for cash of 1,000,000 50c shares at a premium of 30c per share.
Which one of the following journal entries correctly records the issue?
A.
|
|
Debit |
Credit |
|
|
$ |
$ |
|
Share capital |
500,000 |
|
|
Share premium |
300,000 |
|
|
Bank |
|
800,000 | B.
|
|
Debit |
Credit |
|
|
$ |
$ |
|
Bank |
800,000 |
|
|
Share capital |
|
500,000 |
|
Share premium |
|
300,000 | C.
|
|
Debit |
Credit |
|
|
$ |
$ |
|
Bank |
1,300,000 |
|
|
Share capital |
|
1,000,000 |
|
Share premium |
|
300,000 | D.
|
|
Debit |
Credit |
|
|
$ |
$ |
|
Share capital |
1,000,000 |
|
|
Share premium |
|
300,000 |
|
Bank |
|
1,300,000 | |
