Carolina Corporation just issued 10,000 shares of $2 par value common stock for $7.50 per share.The journal entry to record this transaction will include a:

Question

Quizplus · Accepted Answer

The correct journal entry for issuing 10,000 shares of $2 par value common stock at $7.50 per share includes a credit to Paid-in-Capital in Excess of Par--Common Stock for $55,000. This is calculated as the difference between the total amount received ($75,000) and the par value amount ($20,000), which equals $55,000.

Carolina Corporation Just Issued 10,000 Shares of $2 Par Value