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.

Frequently Asked Questions

What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Issuing Par Value Stock concept. You can view video lessons to learn Issuing Par Value Stock. Or if you need more Issuing Par Value Stock practice, you can also practice Issuing Par Value Stock practice problems.

What is the difficulty of this problem?

Our tutors rated the difficulty ofS Company issued 1,000 shares of common stock at \$10 per sha...as low difficulty.

What professor is this problem relevant for?

Based on our data, we think this problem is relevant for Professor Stussie's class at ARIZONA.