If Bonita Company issues 4800 shares of $5 par value common stock for $184000, A
ID: 2590945 • Letter: I
Question
If Bonita Company issues 4800 shares of $5 par value common stock for $184000,
A. Paid-In Capital in Excess of Par will be credited for $160000.
B.Cash will be debited for $160000.
C.Paid-In Capital in Excess of Par will be credited for $24000.
D.Common Stock will be credited for $184000.
Sheffield Company is a publicly held corporation whose $1 par value stock is actively traded at $28 per share. The company issued 3000 shares of stock to acquire land recently advertised at $95000. When recording this transaction, Sheffield Company will
A.credit Common Stock for $84000.
C.credit Paid-In Capital in Excess of Par for $84000.
D.debit Land for $95000.
Explanation / Answer
1 Paid-In Capital in Excess of Par = 180000-(4800*5) = 160000 Paid-In Capital in Excess of Par will be credited for $160000 2 Debit Land for $84000(28*3000)