The entry to record the issuance of 1,000 shares of $2 stated-value common stock for $10 a share consists of a debit to Cash for $10,000 and a:

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When stock is issued at a price above its stated value or par value, the excess amount received is recorded in a separate account called Paid-in Capital in Excess of Stated Value-Common Stock. In this case, the stock is issued for $10 per share, whereas its stated value is $2 per share. Thus, the excess amount received is $8 per share ($10-$2). The total excess amount received on the issuance of 1,000 shares is $8,000 ($8 x 1,000). Therefore, the entry to record the issuance should include a credit to Common Stock for $2,000 (1,000 shares x $2 stated value per share) and a credit to Paid-in Capital in Excess of Stated Value-Common Stock for $8,000.

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