The entry to record selling 300 shares of stated value $60 common stock for $70 per share would be:

Question

Quizplus · Accepted Answer

The stated value of the 300 shares is $60 per share, meaning that the total common stock issued is $18,000 (300 shares x $60 per share). However, the shares were sold for $70 per share, resulting in a total cash received of $21,000 (300 shares x $70 per share). Therefore, the entry should debit Cash for $21,000, credit Common Stock for $18,000, and credit Paid-in Capital in Excess of Stated Value for $3,000 (the difference between the cash received and the common stock issued). This is the only entry that correctly reflects the sale of the shares at a price above their stated value.

The Entry to Record Selling 300 Shares of Stated Value