Question

Concord Corporation issued 8000 shares of stock at a stated value of $10/share. The total issue of stock sold for $15/share. The journal entry to record this transaction would include a:_____.

a. credit to Common Stock for $120000.
b. credit to Paid-in Capital in Excess of Par Value for $40000.
c. debit to Cash for $80000.
d. credit to Common Stock for $80000.

Answer 1

d. credit to Common Stock for $80,000

Step-by-step explanation:

Based on the information given we were told that the 8000 shares of stock at a stated value of $10 per share was issued by the corporation which means that The journal entry to record this transaction would include a:

Credit to Common Stock for $80,000

Calculated as:

Common Stock = 8000 shares*$10 per share

Common Stock=$80,000