Postal Manufacturing began business on July 1,20X5,by selling 1,000 shares of $10 par value capital stock at $30 per share.The effect of this transaction on Postal Manufacturing would be to

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Selling 1,000 shares at $30 each results in $30,000 cash. The par value is $10, so the capital stock at par increases by $10,000 (1,000 shares * $10). The excess over par ($20 per share) is $20,000 (1,000 shares * $20), which increases the paid-in capital in excess of par.

Postal Manufacturing Began Business on July 1,20X5,by Selling 1,000 Shares