The entry to record the issuance of 2,000 shares of $1 par-value common stock for $8 a share consists of a debit to Cash for $16,000 and:

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When a company issues common stock, the amount received for it is recorded as a debit to Cash. The par value of each share is recorded as a credit to Common Stock, and any amount received above the par value per share is recorded as a credit to Paid-in Capital in Excess of Par Value - Common Stock. In this case, the par value is $1 per share, so the credit to Common Stock is $2,000 (2,000 shares x $1 par value per share). The excess of $14,000 (2,000 shares x $7 excess price per share) above the par value per share is recorded as a credit to Paid-in Capital in Excess of Par Value - Common Stock. Therefore, the entry is a debit to Cash for $16,000, a credit to Common Stock for $2,000, and a credit to Paid-in Capital in Excess of Par Value - Common Stock for $14,000.

The Entry to Record the Issuance of 2,000 Shares of $1