Mustang Corporation Issued 5,000 Shares of $1 Par Value Common

Multiple Choice

Mustang Corporation issued 5,000 shares of $1 par value common stock in exchange for a some equipment with an asking price of $75,000.The stock was sold the day before at a price of $13 per share.The journal entry to record this exchange includes a:

A) credit to Paid-in-Capital in Excess of Par--Common Stock for $60,000
B) credit to Common Stock for $60,000
C) debit to equipment for $5,000
D) debit to equipment for $75,000