A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share.The entry to record this transaction would include:
A)A debit to Paid-in Capital in Excess of Par Value,Common Stock for $182,000.
B)A debit to Cash for $14,000.
C)A credit to Common Stock for $182,000.
D)A credit to Common Stock for $14,000.
E)A credit to Paid-in Capital in Excess of Par Value,Common Stock for $196,000.

Question

Quizplus · Accepted Answer

The entry would include a credit to Common Stock for the par value of the shares issued, which is 14,000 shares x $1 par value = $14,000.

A Corporation Sold 14,000 Shares of Its $1 Par Value