Van Buren Corporation issued 5,000 shares of $6 par common stock for $24 per share. For this transaction, Common Stock should be increased for $120,000.

Question

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Common Stock should be increased for $30,000 (5,000 shares * $6 par value per share). The amount over par value, known as additional paid-in capital, is not included in the Common Stock account but rather in a separate equity account.

Van Buren Corporation Issued 5,000 Shares of $6 Par Common