1. A company issued 130 shares of $100 par value common stock for $15,400 cash.

ID: 2573927 • Letter: 1

Question

1. A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:

Multiple Choice

$100.

$1,300.

$2,400.

$13,000.

$15,400.

2. A company issued 60 shares of $100 par value common stock for $7,000 cash. The journal entry to record the issuance is:

Multiple Choice

Debit Cash $7,000; credit Common Stock $7,000.

Debit Investment in Common Stock $7,000; credit Cash $7,000.

Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.

Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000.

Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000.

1. amount of paid-in capital in excess of par is = 15400- (130* 100)

= 15400-13000

= 2400

2. Debit Cash $7,000;

credit Common Stock $6,000;

credit Paid-in Capital in Excess of Par Value, Common Stock $1,000

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