Which of the following journal entries is correct when common stock is initially issued for cash at a price in excess of the stock's stated value?
A) Cash
$ \quad $ Common stock
B) Cash
$ \quad $ Common stock
$ \quad $ Capital in excess of par
C) Cash
$ \quad $ Common stock
$ \quad $Retained earnings
D) Cash
$ \quad $ Common stock
$ \quad $ Gain on sale of stock

Question

Which of the following journal entries is correct when common stock is initially issued for cash at a price in excess of the stock's stated value?
A) Cash
$ \quad $ Common stock
B) Cash
$ \quad $ Common stock
$ \quad $ Capital in excess of par
C) Cash
$ \quad $ Common stock 
$ \quad $Retained earnings
D) Cash
$ \quad $ Common stock  
$ \quad $ Gain on sale of stock

Quizplus · Accepted Answer

When common stock is issued for cash at a price above its stated value, the excess amount is credited to "Capital in excess of par" (or "Additional Paid-In Capital").

Which of the Following Journal Entries Is Correct When Common \quad

Which of the Following Journal Entries Is Correct When Common $\quad$