Question

ABC Corporation sold 100 shares of its own $6 par value common stock for $15 per share. The entry to record this transaction would include a credit to Paid in Capital in Excess of Par for

Select one:

a. $900

b. $2,100

c. $1,500

d. $600

Answer 1

The answer is (a)-$900

Accounts Titles & Explanations	Debit ($)	Credit ($)
Cash A/c [100 Shares x $15.00]	1,500
To Commn stock A/c [100 Shares x $6.00]		600
To Paid in Capital in Excess of Par - Common stock A/c [$1,500 - $600]		900

Therefore, the Paid in Capital in Excess of Par will be credited for $900