Question

If Dakota Company issues 2,100 shares of $5 par common stock for $46,200, a) Common Stock...

If Dakota Company issues 2,100 shares of $5 par common stock for $46,200,

a) Common Stock will be credited for $46,200.

b) Paid-In Capital in Excess of Par will be credited for $10,500.

c) Paid-In Capital in Excess of Par will be credited for $35,700.

d) Cash will be debited for $10,500.

Homework Answers

Answer #1

Correct answer--- (c) Paid-In Capital in Excess of Par will be credited for $35,700.

Following journal entry will be made for the given transaction.

General journal

Debit

Credit

Cash

$   46,200.00

          Common stock (2100 x $5)

$      10,500.00

          Paid-In Capital in Excess of Par (46200-10500)

$       35,700.00

(Shares Issued)

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