Question

Sunrise Online issued 500 shares of its $10 common stock in exchange for equipment with a fair market value of $7,500. The entry to record the transaction would include a

A. debit to Equipment for $5,000.
B. debit to Common Stock for $5,000.
C. credit to Paid-In Capital in Excess of Par Value for $2,500.
D. credit to Common Stock Subscribed for $5,000.

Answer 1

the answer is d I had this already

Answer 2

The correct answer is letter C. Credit to Paid in Capital in Excess of Par Value for $2,500.