Respuesta :
Answer:
The entry to record this transaction would be:
Debit Credit
Cash $182,000
Common stock $14,000
Paid-In Capital in Excess of Par Value, $168,000
Common stock
A credit to Common Stock for $14,000.
Explanation:
A credit to Common Stock for $14,000.
In order to prepare the journal entry we would have to make the following calculations:
Cash= 14,000 * $13=$182,000
Common stock=14,000 * $1=$14,000
Therefore, there would be a Paid-In Capital in Excess of Par Value, Common stock=$182,000-$14,000=$168,000
Therefore, The entry to record this transaction would be:
Debit Credit
Cash $182,000
Common stock $14,000
Paid-In Capital in Excess of Par Value, $168,000
Common stock
Answer:
A credit to Common Stock for $14,000.
Explanation:
There are other entries required. They include:
A debit to Cash Account for $182,000
A credit to APIC for $168,000
And a narration of the transaction in the journal, thus:
To record issue of 14,000 common stock at $13 per share.
The debit to Cash Account records the receipt of cash or increase in assets' value.
The credits to the Common Stock and APIC accounts complete the equity side of the accounting equation.
The APIC represents the Additional Paid-in Capital which receives the variations between the issue price and the par value.
