ABC sells 400 shares of its $23 par common stock for $27.The entry would entail a credit(s)of:

Name: ABC sells 400 shares of its $23 par common stock for $27.The entry would entail a credit(s)of:
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Question

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The shares are sold for $27 each, which is $4 above the par value of $23. For 400 shares, the excess over par is $1,600 (400 shares x $4). The par value of the shares is $9,200 (400 shares x $23). Therefore, the entry would credit Common Stock for $9,200 and Paid-in Capital in Excess of Par-Common for $1,600.

ABC Sells 400 Shares of Its $23 Par Common Stock