The entry to record Shaman, Inc. selling 1,200 shares of $5 par common stock at $9 per share would be to:
A) debit Cash $10,800; credit Common Stock $6,000; credit Paid-In Capital in Excess of Par–Common Stock $4,800.
B) debit Cash $6,000; credit Common Stock $6,000.
C) debit Cash $10,800; debit Paid-In Capital in Excess of Par–Common $4,800; credit Common Stock $15,600.
D) debit Cash $10,800; credit Common Stock $10,800.
A) debit Cash $10,800; credit Common Stock $6,000; credit Paid-In Capital in Excess of Par–Common Stock $4,800.
Explanation: cash = total paid in capital (shares × issue price); common stock = shares × par value; p-i-c in excess is number of shares × (issue price - par). Ex: 1,200 × $9 = $10,800 cash; 1,200 × $5 = $6,000 common stock; 1,200 ($9 - $5) = $4,800 p-i-c in excess.
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