1. Harvey Company is authorized to issue 50,000 shares of $25 par ordinary share. On May 30, 20X6, Harvey issued 25,000 shares at $45 per share. Harvey’s journal entry to record these facts should include

a. a credit to Paid-in Capital in Excess of Par for $1,125,000.

b. a debit to ordinary shares for $1,125,000.

c. a credit to ordinary shares for $625,000.

d. both a and c.

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Dividends Payable.. Preference Shares, $150 par Paid-in Capital in Excess of Par- Ordinary Shares $ 12,500 Cash... $111,000 375,000 Ordinary Shares, $5 par. 640,000 Retained Earnings... 325,000 60,000