A corporation sold 10,000 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include

If a corporation sold 10,000 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include: a credit to Common stock for $100,000.

The journal entry will be:

Debit Cash $120,000

(10,000 ×$12)

Credit Paid-in Capital in the excess of par value $20,000

[10,000×($12-$10)]

Credit Common stock $100,000

(10,000 × $10)

(To record issuance of shares )

Inconclusion if a corporation sold 10,000 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include: a credit to Common stock for $100,000.

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A credit to common stock for $100,000.

Explanation:

From the question, we are informed that a corporation sold 10,000 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include a credit to common stock for $100,000.

The journal would therefore be:

Debit cash account $120,000($10000 × 12)

Common stock will be $100,000 i.e ($10,000 × 10)

Paid-in Capital in the excess of par Value will be:

= $120,000 - $100,000

= $20,000