Torres, Inc. Productions issued 40 shares of $16 par value stock to its accountant in full payment for her $1,300 fee for assisting in setting up the new company. The entry to record the issuance of the stock would include a:
A) debit to Common Stock for $640.
B) credit to Common Stock for $1,300.
C) credit to Common Stock for $640.
D) debit to Paid-in Capital in Excess of Par–Common for $660.
C) credit to Common Stock for $640.
Explanation: shares × par value = common stock; ex: 40 × $16 = $640.
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