Alt Corp. issues 3,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to:
A) Common Stock $30,000 and Paid-in Capital in Excess of Stated Value $12,000.
B) Common Stock $28,000.
C) Common Stock $30,000 and Paid-in Capital in Excess of Par Value $12,000.
D) Common Stock $30,000 and Retained Earnings $12,000.

Question

Quizplus · Accepted Answer

The common stock is credited for the par value amount ($10 x 3,000 = $30,000), and the excess over par value ($4 x 3,000 = $12,000) is credited to Paid-in Capital in Excess of Par Value.

Alt Corp Issues 3,000 Shares of $10 Par Value Common Stock