A Corporation Issued 5,000 Shares of Its $1 Par Value

Multiple Choice

A corporation issued 5,000 shares of its $1 par value stock at $16 per share. The entry to record this transaction would be:

A) Debit Cash $80,000; credit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Common Stock $75,000.
B) Debit Cash $80,000; credit Common Stock $80,000.
C) Debit Cash $80,000; credit Common Stock $5,000; credit Paid-in Capital in Excess of Par Value, Common Stock $75,000.
D) Debit Treasury Stock $80,000; credit Cash $80,000.
E) Debit Common Stock $80,000; debit Paid-in Capital in Excess of Par Value, Common Stock $5,000; credit Cash $75,000.