Answer:
The entry to record this transaction would be:
Debit Credit
Cash $182,000
Common stock $14,000
Paid-In Capital in Excess of Par Value, $168,000
Common stock
A credit to Common Stock for $14,000.
Explanation:
A credit to Common Stock for $14,000.
In order to prepare the journal entry we would have to make the following calculations:
Cash= 14,000 * $13=$182,000
Common stock=14,000 * $1=$14,000
Therefore, there would be a Paid-In Capital in Excess of Par Value, Common stock=$182,000-$14,000=$168,000
Therefore, The entry to record this transaction would be:
Debit Credit
Cash $182,000
Common stock $14,000
Paid-In Capital in Excess of Par Value, $168,000
Common stock
