Answer:
Debit Cash $312,000; credit Common Stock $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $286,000.
Explanation:
The journal entry to record the given transaction is shown below:
Cash Dr (26,000 shares × $12) $312,000
To Common stock (26,000 shares × $1) $26,000
To Additional paid in capital in excess of par value - common stock $286,000
(Being the issuance of the common stock is recorded)
For recording we debited the cash as it increased the asset and credited the common stock and additional paid in capital as it also increased the equity
