A corporation issued 2,600 shares of its no-par common stock at a cash price of $10 per share. The entry to record this transaction would be:

Multiple Choice

• Debit Common Stock $26,000; credit Cash $26,000.

• Debit Treasury Stock $2,600; debit Paid-in Capital in Excess of Par Value, Treasury Stock $23,400; credit Common Stock $26,000.

• Debit Treasury Stock $26,000; credit Cash $26,000.

• Debit Cash $26,000; credit Common Stock $26,000.

• Debit Cash $26,000; credit Paid-in Capital in Excess of Par Value, Common Stock $2,600; credit Common Stock $23,400.