Issuing Par Value Stock Video Lessons

Concept

# Problem: S Company issued 1,000 shares of common stock at $10 per share. If the stock has a par value of$4 a share, the journal entry to record the issuance would include a a. Credit to Common Stock for $4,000. b. Debit to Cash for$4,000. c. Credit to Paid-in-Capital in Excess of Par for $10,000. d. Debit to Retained Earnings for$6,000.

###### Problem Details

S Company issued 1,000 shares of common stock at $10 per share. If the stock has a par value of$4 a share, the journal entry to record the issuance would include a

a. Credit to Common Stock for $4,000. b. Debit to Cash for$4,000.

c. Credit to Paid-in-Capital in Excess of Par for $10,000. d. Debit to Retained Earnings for$6,000.