If Pratt Company issues 5,000 shares of $5 par value common stock for $210,000, the account
A)Common Stock will be credited for $185,000.
B)Paid-in Capital in Excess of Par Value will be credited for $210,000.
C)Paid-in Capital in Excess of Par Value will be credited for $235,000.
D)Cash will be debited for $210,000.

Question

Quizplus · Accepted Answer

When Pratt Company issues shares, they receive cash, so the Cash account is debited for the amount received, which is $210,000.

If Pratt Company Issues 5,000 Shares of $5 Par Value