Alt Corp.issues 5000 shares of $10 par value common stock at $14 per share.When the transaction is recorded increases are made to:

Question

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The par value of the common stock is $10, so the total par value of the 5000 shares is $50,000. The company received $14 per share, which is $4 per share above par value. Therefore, the total amount of paid-in capital in excess of par value is $4 x 5000 = $20,000. So the entry to record the issuance of the stock would be to debit Cash for $70,000 and credit Common Stock for $50,000 and Paid-in Capital in Excess of Par Value for $20,000.

Alt Corpissues 5000 Shares of $10 Par Value Common Stock at at $14