If a corporation issues 5000 shares of $5 par value common stock for $85,000,the journal entry would include a credit to:
A)Common Stock for $85,000.
B)Paid-in Capital in Excess of Par-Common for $85,000.
C)Common Stock for $60,000.
D)Paid-in Capital in Excess of Par-Common for $60,000.

Question

Quizplus · Accepted Answer

Credit Common Stock 5000 × $5 = $30,000;Credit Paid-in Capital in Excess of Par-Common = $85,000 - $30,000 = $60,000

If a Corporation Issues 5000 Shares of $5 Par Value