Answer:
c. Common Stock, $10,000, and Paid-In Capital in Excess of Par, $4,000 Explanation:
Stock are recorded under two accounts.
The Par value of the stock issued will be recorded in the common stock account.
Common Stock = 1,000 x $10 = $10,000
The value excess of par is recorded in the Paid-In Capital in Excess of Par account.
Paid-In Capital in Excess of Par = 1,000 x ($14 - $10) = $4,000
Common stock and Paid-In Capital in Excess of Par are the equity account and credited as it has credit nature.
Cash Receipt = 1,000 x $14 = $14,000
Following Journal Entries will be recorded
Dr. Cash $14,000
Cr. Common Stock $10,000
Cr. Paid-In Capital in Excess of Par $4,000
