If a corporation issues 2000 shares of $1 par value common stock for $8000, the journal entry would include a credit to:

Name: If a corporation issues 2000 shares of $1 par value common stock for $8000, the journal entry would include a credit to:
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

The credit to Common Stock would be for the par value of the shares issued, which is 2000 shares x $1 par value = $2000. The excess amount received over the par value would be credited to Paid-in Capital in Excess of Par-Common.

If a Corporation Issues 2000 Shares of $1 Par Value