The answer provided below has been developed in a clear step by step manner. Step: 1
Number of shares issued = 6,000
Issue price per share = $10 Par value per share = $2
Debit to cash = Number of shares issued x Issue price per share
= 6,000 x $10 = $60,000
Credit to common stock = Number of shares issued x Par value
per share 6,000 x $2
= $12,000
Credit to paid in capital in excess of par = Number of shares issued x (Issue price per share - Par value per share)
= 6,000 × ($10-$2) = 6,000 x $8
= $48,000
The amount is credited as paid in capital in excess of par = $48,000