Thomas Corporation issued 3,000 shares of $5 par value common stock for $20 per share. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par for:
A) $60,000.
B) $45,000.
C) $15,000.
D) $30,000.

Question

Quizplus · Accepted Answer

The total amount received from the issuance is 3,000 shares * $20 = $60,000. The par value portion is 3,000 shares * $5 = $15,000. The amount credited to Paid-in Capital in Excess of Par is the difference: $60,000 - $15,000 = $45,000.

Thomas Corporation Issued 3,000 Shares of $5 Par Value Common