A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:

Multiple Choice

• Debit Treasury Stock $2,500; debit Paid-in Capital in Excess of Par Value, Treasury Stock $25,000; credit Common Stock $27,500.

• Debit Treasury Stock $27,500; credit Cash $27,500.

• Debit Cash $27,500; credit Common Stock $27,500.

• Debit Cash $27,500; credit Paid-in Capital in Excess of Par Value, Common Stock $2,500; credit Common Stock $25,000.

• Debit Common Stock $27,500; credit Cash $27,500.