The entry to record selling 500 shares of stated value $40 common stock for $52 per share would be:

Question

Quizplus · Accepted Answer

The entry involves debiting Cash for the total amount received ($52 x 500 shares = $26,000), crediting Common Stock for the stated value ($40 x 500 shares = $20,000), and crediting Paid-in Capital in Excess of Stated Value for the excess amount received over the stated value ($12 x 500 shares = $6,000).

The Entry to Record Selling 500 Shares of Stated Value