Golden Eagle Corporation issues 100 shares of $10 par value common stock for $50 per share. This transaction will include a credit to Common Stock for:

Question

Quizplus · Accepted Answer

The credit to Common Stock is for the par value of the shares issued, which is 100 shares x $10 par value = $1,000. The excess amount received over the par value (100 shares x $40 excess = $4,000) is credited to Paid-in Capital.

Golden Eagle Corporation Issues 100 Shares of $10 Par Value