Issuing Par Value Stock Video Lessons

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Problem: A corporation sold 10,000 shares of $5 par value common stock for $40 per share. The journal entry to record the transaction will include: A) a credit to Gain on Sale of Common Stock for $350,000. B) a credit to Common Stock for $50,000. C) a credit to Common Stock for $400,000. D) a credit to Capital in Excess of Par Value for $35,000.

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Problem Details

A corporation sold 10,000 shares of $5 par value common stock for $40 per share. The journal entry to record the transaction will include:

A) a credit to Gain on Sale of Common Stock for $350,000.

B) a credit to Common Stock for $50,000.

C) a credit to Common Stock for $400,000.

D) a credit to Capital in Excess of Par Value for $35,000.

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