On may 10, paige corporation issues 2,500 shares of $5 par value common stock for cash at $13 per share.

journalize the issuance of the stock. (credit account titles are automatically indented when amount is entered. do not indent manually.)

The Journal entry is as follows:

Cash Account                                 Dr. $32,500

To common stock account                                 $12,500

To Paid in capital in excess of common stock  $20,000

(To record the issuance of the stock)

Workings:

Cash = 2,500 shares × $13 per share

        = $32,500

Common stock = 2,500 × $5 per share

                          = $12,500

Paid in capital in excess of common stock:

= 2,500 × $8 per share

= $20,000