The Vernon Corporation was formed on January 2, 2018. The company sold 20,000 shares of $8.00 par value stock for $20.00 per share. On July 1, 2018, Vernon bought back 4,000 shares of stock for $24.00 per share. The treasury stock was resold on September 1, 2018 for $32.00 per share.Which one of the following is the entry to record the original sale of the stock?
A.
| DR Common stock | 160,000 | ? |
| DR Paid-in capital in excess of par | 240,000 | ? |
| CR Cash | ? | 400,000 |
B.
| DR Common stock | 240,000 | ? |
| DR Paid-in capital in excess of par | 160,000 | ? |
| CR Cash | ? | 400,000 |
C.
| DR Cash | 400,000 | ? |
| CR Common stock | ? | 240,000 |
| CR Paid-in capital in excess of par | ? | 160,000 |
D.
| DR Cash | 400,000 | ? |
| CR Common stock | ? | 160,000 |
| CR Paid-in capital in excess of par | ? | 240,000 |
Answer: D
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