USA: +1 (725) 712-1730 
Sign in
The appropriate journal entry to record the issue of 1,000 shares of $1 par-value common stock, which is issued for $4 per share would be:
Select one:
a. Cash, 4,000 / Common Stock, 4,000
b. Cash, 4,000 / Common Stock, 1,000 / Paid-in Capital in Excess of Par, 3,000
c. Cash, 4,000 / Common Stock, 1,000 / Retained Earnings, 3,000
d. Cash, 1,000 / Paid-in Capital in Excess of Par, 3,000 / Common Stock, 4,000
Expert Answer
Answer is B
The journal entry would be:
| General Journal | Debit | Credit |
| Cash(1,000 × $4) | $4,000 | |
| Common Stock(1,000 × $1) | $1,000 | |
| Paid-in Capital in Excess of Par(1,000 × $3) | $3,000 |
