Evon, a limited liability company, issued 1,000,000 ordinary shares of 25c each at a price of $1·10 per share, all
received in cash.
What should be the accounting entries to record this issue?
A Debit: Cash $1,100,000
Credit: Share capital $250,000
Share premium $850,000
B Debit: Share capital $250,000
Share premium $850,000
Credit: Cash $1,100,000
C Debit: Cash $1,100,000
Credit: Share capital $1,100,000
D Debit: Cash $1,100,000
Credit: Share capital $250,000
Retained earnings $850,000

A