Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When th

Question

Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share.  When the transaction is recorded, credits are made to

Common Stock, $10,000, and Retained Earnings, $4,000

Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000

Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000

Common Stock, $14,000

Common Stock, $10,000, and Retained Earnings, $4,000

Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000

Common Stock, $4,000, and Paid-In Capital in Excess of Stated Value, $10,000

Common Stock, $14,000

Explanation / Answer

Common Stock = 1,000 Shares * $ 10

= $ 10,000

Paid-In Capital in Excess of Par = 1,000 Shares * $ 4

= $ 4,000

Hence the correct answer is

Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000

Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000

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