Jackson Corporation issued 10,000 shares of $6 par common stock for $24 per share. For this transaction, Common Stock should be credited (increased) for $240,000.

Question

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The common stock account should only be credited for $60,000, the par value of the stock. The remaining $180,000 should be credited to paid-in capital in excess of par value - common stock.

Jackson Corporation Issued 10,000 Shares of $6 Par Common Stock