Darman Company Issued 700 Shares of No-Par Common Stock for $7,700

Short Answer

Darman Company issued 700 shares of no-par common stock for $7,700. Which of the following journal entries would be made if the stock has a stated value of $2 per share? a.
$\begin{array}{lrl}\text { Cash } & 7,700 & \\\text { Common Stock } && 7,700\end{array}$

b.
$\begin{array}{lll}\text { Cash } & 7,700 & \\\text { Common Stock } && 1,400 \\\text { Paid-in Capital in Excess of Par } && 6,300\end{array}$

c.
$\begin{array}{lrl}\text { Cash } & 7,700 & \\\text { Common Stock } & & 1,400 \\\text { Paid-in Capital in Excess of Stated Value } & & 6,300\end{array}$

d.
$\begin{array}{cc}\text { Common Stock }&7,700 \\\text { Cash }& & 7,700 \\\end{array}$