Piper, Inc. issued 400 shares of $9 par common stock in exchange for a piece of equipment with a current market value of $5,000. Which of the following is NOT part of the journal entry for this transaction?
A) Debiting equipment for $5,000
B) Crediting Common Stock for $5,000
C) Crediting paid-in capital in excess of par-common for $1,400
D) Crediting Common Stock for $3,600
B) Crediting Common Stock for $5,000
Explanation: credit common stock for shares × par value; credit p-i-c in excess for difference between asset value and common stock. Ex: 400 × $9 = $3,600 common stock; $5,000 - $3,600 = $1,400 p-i-c in excess
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