Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credit(s) are made to:
A) Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000
B) Common Stock, $22,000, and Retained Earnings, $15,000
C) Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000
D) Common Stock, $22,000

Question

Quizplus · Accepted Answer

Total cash raised through the issue of shares = 1,000 shares × $22 = $22,000
Par value of common stock issued = Number of shares issued × Par value of the share = 1,000 × $15 = $15,000
Paid-In Capital in Excess of Par-Common Stock = $22,000 - $15,000 = $7,000