A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

Date   Description and Explanation      Debit           Credit

           Cash                                              $182,000

                  Common stock                                           $140,000

                  Additional paid-in capital                           $42,000

            (To record the issuance of equity shares)

Explanation:

Additional capital = (Issue price - Par value) * Shares issued

= ($13−$10) * 14,000 shares

= $3 * 14,000 shares

= $42,000

Face value = Shares  issued * Par value

= 14,000 shares * $10 per share

= $140,000