Olsson Corporation received a $70 million check from underwriters for issuing 1 million shares of $5 par value stock. The underwriters will sell the stock for $70 per share. The check was received in exchange for stock that the underwriters plan to sell at a higher price per share.

1. Olsson Corporation received a check from its underwriters for $70 million. This was for the issue
of one million of its $5 par stock that the underwriters expect to sell for $70 per share.
below are the choices for an answer.. which one?
Olsson Corporation received a check from its underwriters for $70 million. This was for the issue
of one million of its $5 par stock that the underwriters expect to sell for $70 per share.
Which is the correct entry to record the issue of the stock?
Solution
Right answer is Option A