Question

A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: A credit to Paid-in Capital in Excess of Par Value, Common Stock for $42,000. A debit to Cash for $140,000. A credit to Common Stock for $182,000. A credit to Cash for $182,000.

Answer 1

B) A credit to common stock for $ 140,000

Step-by-step explanation:

Journal Entry will include:

Date Journal Entry Debit Credit

Cash/Bank A/C $182,000

(14,000 shares*$13)

To Common capital A/C $140,000

To Contributed capital in excess $42,000

of par value A/C