Problem:
If Marvine Company issues 2,000 shares of $5 par value common stock for $140,000, the appropriate journal entry to records this transaction will include:
- Paid-in Capital in Excess of Par Value will be credited for $10,000.
- Cash will be debited for $130,000.
- Common Stock will be credited for $140,000.
- Paid-in Capital in Excess of Par Value will be credited for $130,000.
Note: Explain all calculation and formulas.