Test 4. Fall, 2017 Seved Help Save & Exit Submit 23 A corporation sold 15,500 sh

Question

Test 4. Fall, 2017 Seved Help Save & Exit Submit 23 A corporation sold 15,500 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include: 8 otsa:33 Multiple Choice A debit to Cash for $155,000. A creclit to Common Stock for S155,000. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $31,000. A creclit to Common Stock for $186,000. A credit to Paid-in Capital in Excess of Par Value, Common Stock for $186,000. Activate Windows Go to settings to activate Windows Mc

Explanation / Answer

Amount received

= Number of shares x Cash price per share

= 15,500 x $12

= $ 186,000

Journal entry will be as follows

Cash              $186,000

       Common Stock                                   $155,000

       Paid-in capital in excess of par value $31,000

So, as per above discussion, option B is the correct option

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