When a company issues 27,000 shares of $4 par value common stock for $40 per share, the journal entry for this issuance would include:

Multiple Choice

• A debit to Cash for $108,000.

• A credit to Additional Paid-in Capital for $972,000.

• A credit to Common Stock for $1,080,000.

• A debit to Additional Paid-in Capital for $108,000.