1. A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:

Multiple Choice

$100.

$1,300.

$2,400.

$13,000.

$15,400.

2. A company issued 60 shares of $100 par value common stock for $7,000 cash. The journal entry to record the issuance is:

Multiple Choice

Debit Cash $7,000; credit Common Stock $7,000.

Debit Investment in Common Stock $7,000; credit Cash $7,000.

Debit Cash $7,000; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.

Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,000.

Debit Cash $7,000; credit Paid-in Capital in Excess of Par Value, Common Stock $6,000, credit Common Stock $1,000.