Alliance Corp issues 3050 shares of 10 par value common stoc

Alliance Corp. issues 3,050 shares of $10 par value common stock at $17 per share. When the transaction is recorded, what credit entry or entries are made? Select the correct answer. Common Stock $21,350 and Retained Earnings $30,500. Common Stock $51,850. Common Stock $30,500 and Paid-in Capital in Excess of Par Value $21,350. Common Stock $30,500 and Paid-in Capital in Excess of Stated Value $21,350.

Solution

C. Common Stock $30,500 and Paid-in Capital in Excess of Par Value $21,350.

The journal entry would be: