Alt Corp.issues 5,000 shares of $10 par value common stock at $14 per share.When the transaction is recorded, credits are made to:
A)Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000.
B)Common Stock $70,000.
C)Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
D)Common Stock $50,000 and Retained Earnings $20,000.

Question

Quizplus · Accepted Answer

The common stock is credited for the par value amount ($10 x 5,000 shares = $50,000), and the excess over par value ($4 x 5,000 shares = $20,000) is credited to Paid-in Capital in Excess of Par Value.

Alt Corpissues 5,000 Shares of $10 Par Value Common Stock at at $14