1.

When 5,000 shares of $1 par common stock are issued at $5 per share, total paid-in capital:

Common stock will be credited for $25,000.

Paid-in capital in excess of par value will be credited for $25,000.

Gain on sale of common stock will be credited for $20,000.

Paid-in capital in excess of par value will be credited for $20,000. 2.

Vickers Company issues 2,000 shares of $10 par value common stock for $150,000 cash. The effect on the financial statements would be:

Common stock will be increased $20,000.

Paid-in capital in excess of par value will be increased by $20,000.

Paid-in capital in excess of par value will be increased by $150,000.

Gain on sale of common stock will be increased by for $130,000.

3.

The entry to record the issuance of 5,000 shares of $10 par common stock for $13 per share includes a:

Debit to cash for $50,000

Credit to gain on sale of common stock for $15,000

Credit to common stock for $50,000

Credit to common stock for $65,000

4.

The entry to record the issuance of 10,000 shares of $2 par common stock for $10 per share includes a:

Credit to Paid in capital in Excess of Par value Common for $100,000

Credit to common stock for $20,000

Credit to gain on sale of common stock for $80,000

Credit to common stock for $100,000