Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is recorded, credit(s) are made to
A) Common Stock, $14,000
B) Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000
C) Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000
D) Common Stock, $10,000, and Retained Earnings, $4,000

Question

Quizplus · Accepted Answer

Total cash raised through the issue of shares = 1,000 × $14 = $14,000
Par value of common stock issued = Number of shares issued × Par value of each share = 1,000 × $10 = $10,000
Paid-In Capital in Excess of Par-Common Stock = $14,000 - $10,000 = $4,000

Alma Corp Issues 1,000 Shares of $10 Par Common Stock at at $14