Question

Nexis Corp. issues 1,000 shares of $15 par value common stock at $22 per share. When the transaction is recorded, credits are made to:______.
a. Common Stock, $22,000, and Retained Earnings, $15,000
b. Common Stock, $22,000
c. Common Stock, $15,000, and Paid-In Capital in Excess of Par, $7,000
d. Common Stock, $7,000, and Paid-In Capital in Excess of Stated Value, $15,000

Answer 1

Answer: C. Common Stock, $15,000, and Paid-In Capital in Excess of Par $7,000

Explanation:

The journal entry that will be made for this transaction include:

Debit Cash $22,000

Credit Common Stock $15,000

Credit Paid-In Capital in Excess of Par $7,000

Therefore, the correct option is C