When shares of common stock are issued for an amount of cash that is greater than the par value of the stock, the credit entry is made as follows.

Question 1 options:

1)	The entire amount of cash received is credited to the "Common Stock in Excess of Par" account.

2)	The entire amount of cash received is credited to the "Common Stock" account.

3)	An amount equal to the par value of the issued stock is credited to the "Par Stock" account, and the remainder to "Paid-In Capital in Excess of Par" account.

4)	An amount equal to the par value of the issued stock is credited to the "Common Stock" account, and the remainder to "Paid-In Capital in Excess of Par" account.

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