Alma Corp. issues 1,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to:

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The par value of the common stock is $10, so the total amount of common stock issued would be $10,000 (1,000 shares x $10). However, the company is selling the shares above their par value at $16 per share, resulting in a total proceeds of $16,000. The difference between the par value and the selling price is $6 per share, which represents the amount of paid-in capital in excess of par value. Therefore, the credit entries should be made to Common Stock and Paid-in Capital in Excess of Par Value.

Alma Corp Issues 1,000 Shares of $10 Par Value Common Stock