Nexis Corp. issues 2,470 shares of $12 par value common stock at $17 per share. When the transaction is recorded, what credit entry or entries are made?Oa. Common Stock $29,640 and Paid-in Capital in Excess of Stated Value $12,350.Ob. Common Stock $29,640 and Paid-in Capital in Excess of Par Value $12,350.Oc. Common Stock $41,990.Od. Common Stock $12,350 and Retained Earnings $29,640.

A company can issue its common stock at Par, discount or at premium. When a stock is issued at…

Answered: Nexis Corp. issues 2,470 shares of $12…

Nexis Corp. issues 2,470 shares of $12 par value common stock at $17 per share. When the transaction is recorded, what credit entry or entries are made?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Nexis Corp. issues 2,470 shares of $12 par value common stock at $17 per share. When the transaction is recorded, what credit entry or entries are made?
Oa. Common Stock $29,640 and Paid-in Capital in Excess of Stated Value $12,350.
Ob. Common Stock $29,640 and Paid-in Capital in Excess of Par Value $12,350.
Oc. Common Stock $41,990.
Od. Common Stock $12,350 and Retained Earnings $29,640.

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