A.) On August 8, Borris, Inc. sold 1,000 shares of its common stock to an investor. The stock has a PAR value of $2 per share, but Borris sold the stock for $12 per share. Select the journal entry Borris should record on August 8. (Most entries are blatantly misleading and would never be correct).

1.)

			DEBIT	CREDIT
Cash			12,000
Common stock, at $2 par				12,000

2.)

			DEBIT	CREDIT
Retaind earnings			12,000
Common stock, at $2 par				10,000
Additional paid-in-capital				2,000

3.)

			DEBIT	CREDIT
Cash			12,000
Common stock, at $2 par				2,000
Additional paid-in-capital				10,000

4.)

			DEBIT	CREDIT
Cash			10,000
Additional paid-in-capital			2,000
Common stock, at $2 par				12,000

5.)

			DEBIT	CREDIT
Common stock, at $2 par plus			12,000
Additional paid-in-capital				12,000