Question

Alma Corp. issues 2,480 shares of $8 par common stock at $16 per share. When the transaction is recorded, credit(s) are made to a.Common Stock $19,840 and Retained Earnings $19,840. b.Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840. c.Common Stock $39,680. d.Common Stock $19,840 and Paid-in Capital in Excess of Par Value $19,840.

Answer 1

Answer:

b. Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840.

Explanation:

                                         Journal Entry

Particulars                                           Debit             Credit

Cash ($16*2,480)                                $39680

Common stock (2,480 *$8)                                         $19,840

Paid in capital in excess of par value (2,480 *$8)      $19,840