Question

Calculator When Wisconsin Corporation was formed on lanuary 1, the corporate charter provided for 86,800 shares of $5 par value common stock. During its first month of operation, the Comparation sued 8, 00 shares of stock at a price of $29 per share. The entry to record the above transaction would include a debt to Common Stock for $36,800 Ob credit to Common Stock for $234,030 t o ck for $193,680 Previous Next >

Answer 1

Answer :

The entry to be passed for issue of 8070 shares for 29 $ per share is as follows :

S. No.	Particulars	Dr. ($)	Cr. ($)
1	Cash a/c …Dr	2,34,030
	To Common Stock		40,350
	To Paid-In Capital in excess of Par-common stock		1,93,680
	(Being common stock issued in excess of par value)

Hence the correct answer is "D", i.e. credit to Paid-In Capital in excess of Par-common stock for $ 193,680.