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kvv77 [185]
4 years ago
10

A company issued 60 shares of $100 par value common stock for $7,000 cash.

Business
1 answer:
jolli1 [7]4 years ago
4 0

Answer:

b) Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.

Explanation:

When shares are issued and paid for, the entries required are debit to cash account and  a credit to common stock. However, when the amount received is higher than the par value of the stock issued, the excess received is recorded as a share premium or Paid-in Capital in Excess of Par Value.

As such, where the par value is $100 and 60 shares were issued, value of common stock issued

= $100 * 60

= $6,000

Paid-in Capital in Excess of Par Value = $7,000 - $6,000

= $1,000

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6 0
2 years ago
n many countries, one of the roles of the central bank is to provide loans to distressed financial institutions. What is the ter
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Answer:

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deposit insurance.

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3 years ago
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5 0
3 years ago
Martin owns his own motorcycle and ATV store. He notices that many of his customers talk about golf while in his store. He quick
Mekhanik [1.2K]

Answer:

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a retailer acquires merchandise for resale. how would this be recorded in a perpetual inventory system?
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Debited to the inventory account.


Hope this helps!
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2 years ago
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