Halo Corporation Repaid an $8,000 Note Payable by Issuing 500

Multiple Choice

Halo Corporation repaid an $8,000 note payable by issuing 500 shares of its $4.00 par value capital stock.The effect of this transaction on Halo Corporation would be to

A) increase the capital stock at par by $8,000 and decrease the notes payable account by $8,000.
B) increase the capital stock at par by $2,000 and decrease the notes payable account by $2,000.
C) increase the capital stock at par by $2,000,increase the paid-in capital in excess of par account by $6,000,and decrease the notes payable account by $8,000.
D) increase the capital stock at par by $2,000,decrease the paid-in capital in excess of par account by $6,000,and decrease the notes payable account by $8,000.
E) increase the capital stock at par by $2,000,decrease the cash account by $6,000,and decrease the notes payable account by $8,000.