A corporation sold 19,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

The transaction will be recorded as,

Cash                                                                   $247000 Dr

     Common Stock                                                            $190000 Cr

     Paid in Capital in excess of par-Common Stock     $57000 Cr

Explanation:

The entry to record the issuance of common stock against cash at a price higher than par will require a debit to the cash account which is an asset and is increasing as a result of the transaction. The debit will be for the amount for which shares are being issued.

Cash = 13 * 19000 = $247000

The credit part of the entry will contain a credit to common stock for the amount of par value.

Common stock = 10 * 19000 = $190000

The remaining will be credited to a separate account which is a reserve account and which will be credited as a result of issuing for more than par.

3 * 19000 = $57000

answer; swot analysis;