The entry to record selling 700 shares of stated value $50 common stock for $74 per share would be:
A) debit Cash $51,800; credit Common Stock $51,800.
B) debit Cash $35,000; credit Common Stock $35,000.
C) debit Cash $35,000; debit Paid-in Capital in Excess of Stated Value–$16,800; credit Common Stock $51,800.
D) debit Cash $51,800; credit Common Stock $35,000; credit Paid-in Capital in Excess of Stated Value–$16,800.
D) debit Cash $51,800; credit Common Stock $35,000; credit Paid-in Capital in Excess of Stated Value–$16,800.
Explanation: total paid in capital (shares × issue price); common stock = shares × stated value; p-i-c in excess is number of shares × (issue price - stated). Ex: 700 × $74 = $51,800 cash; 700 × $50 = $35,000 common stock; 700 ($74 - $50) = $16,800 p-i-c
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