New Corp. issues 2,000 shares of $10 par value common stock at $16 per share. When the transaction is recorded, credits are made to

1.Common Stock $20,000 and Paid-in Capital in Excess of Par $12,000.

2. Common Stock $20,000 and Retained Earnings $12,000.

3. Common Stock $32,000.

4. Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $12,000.