The entry to record MidIowa.net selling 1,000 shares of $6.00 par value common stock at $8.00 would be to:

Question

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The sale of common stock at a price higher than its par value results in a credit to Common Stock (for the par value of the shares sold) and a credit to Paid-in Capital in Excess of Par Value-Common (for the amount received in excess of the par value). Therefore, the correct entry is to debit Cash for the amount received ($8,000), credit Common Stock for the par value of the shares sold ($6,000), and credit Paid-in Capital in Excess of Par Value-Common for the excess received over the par value ($2,000).

The Entry to Record MidIowa