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

Question

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The Common Stock account should be increased by the par value of the shares issued, which is 5,000 shares x $6 par value = $30,000. The excess amount received over the par value is recorded in Additional Paid-In Capital.

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