If Merril Company issues 9000 shares of $5 par value common stock for $160000 the account
A) Common Stock will be credited for $45000.
B) Paid-in Capital in Excess of Par will be credited for $45000.
C) Paid-in Capital in Excess of Par will be credited for $160000.
D) Cash will be debited for $115000.

Question

Quizplus · Accepted Answer

The Common Stock account is credited for the par value of the shares issued, which is 9000 shares x $5 par value = $45000.

If Merril Company Issues 9000 Shares of $5 Par Value