The entry to record selling 400 shares of no-par common stock with a stated value of $60 for $70 would be to:

Question

Quizplus · Accepted Answer

The stated value of the shares is $60, so the total par value of 400 shares is $24,000 (400 x $60). The selling price is $70 per share, so the total amount received is $28,000 (400 x $70). The common stock is recorded at the par value of $24,000 (400 x $60) and the difference between the total amount received and the par value is recorded as paid-in capital in excess of stated value. Therefore, the entry would be to debit Cash for $28,000, credit Common Stock for $24,000, and credit Paid-in Capital in Excess of Stated Value-Common for $4,000.

The Entry to Record Selling 400 Shares of No-Par Common