Issuing Par Value Stock Video Lessons

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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.

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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.

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