Issuing Par Value Stock Video Lessons

Concept

# Problem: The entry to record the issuance of 500 shares of $10 par-value common stock for$14 a share consists of a debit to Cash for $7,000 and a credit to Common Stock for a.$5,000 and a credit to Treasury Stock for $2,000. b.$5,000 and a credit to Paid-in Capital in Excess of Par Value—Common Stock for $2,000. c.$5,000 and a credit to Gain on Sale of Common Stock for $2,000. d.$7,000.

###### Problem Details

The entry to record the issuance of 500 shares of $10 par-value common stock for$14 a share consists of a debit to Cash for $7,000 and a credit to Common Stock for a.$5,000 and a credit to Treasury Stock for $2,000. b.$5,000 and a credit to Paid-in Capital in Excess of Par Value—Common Stock for $2,000. c.$5,000 and a credit to Gain on Sale of Common Stock for $2,000. d.$7,000.