# A company issued 30 shares of $.50 par value common stock for$12,000. The credit to additional paid-in capital would be ________. A. $11,985 B.$12,000 C. $15 D.$10,150

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 14, Problem 11MC
Textbook Problem
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## A company issued 30 shares of $.50 par value common stock for$12,000. The credit to additional paid-in capital would be ________.A. $11,985B.$12,000C. $15D.$10,150

To determine

Introduction:

Common stock refers to the securities of a company which gives ownership right to the holder of these. Company pays dividend to common stockholders.

To choose:

The correct amount which must credit to additional paid in capital from given options.

### Explanation of Solution

30 shares has been issued at $0.5 par value for$12,000. So, cash will be debited for $12,000. Now, common stock will be credited for$15 = (30×$0.5) . Remaining balance of$11,985 = ($12,000$15) will be credited to additional paid in capital

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