When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,500 shares of stock at a price of $16 per share.
The entry to record the above transaction would include a

Question

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 shares of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 8,500 shares of stock at a price of $16 per share.  
The entry to record the above transaction would include a

Quizplus · Accepted Answer

Total cash raised through the issue of shares = 8,500 × $16 = $136,000
Amount raised through the issue of shares at par = 8,500 × $10 = $85,000
Paid-In Capital in Excess of Par-Common Stock = $136,000 - $85,000 = $51,000  11ea84e6_afd1_3821_9a63_33e1644c1e42_TB2281_00_TB2281_00

When Wisconsin Corporation Was Formed on January 1, the Corporate