If Lantz Company issues 5,000 shares of $5 par value common stock for $210,000, the account
A) Common Stock will be credited for $25,000.
B) Paid-in Capital in Excess of Par Value will be credited for $25,000.
C) Paid-in Capital in Excess of Par Value will be credited for $210,000.
D) Cash will be debited for $185,000.

Question

Quizplus · Accepted Answer

When Lantz Company issues 5,000 shares of $5 par value common stock, the Common Stock account is credited for the par value amount, which is 5,000 shares x $5 = $25,000.

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