If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,

Name: If Dakota Company issues 1,500 shares of $6 par common stock for $75,000,
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Question

Quizplus · Accepted Answer

The par value of the stock is $6 per share, so 1,500 shares at $6 per share is $9,000. The remaining $66,000 is the amount paid above par, which is credited to Paid-In Capital in Excess of Par. Therefore, the correct journal entry would be:

Debit: Cash $75,000
Credit: Common Stock $9,000
Credit: Paid-In Capital in Excess of Par $66,000

If Dakota Company Issues 1,500 Shares of $6 Par Common