Answer :
Answer:
The transaction will be recorded as,
Cash $247000 Dr
Common Stock $190000 Cr
Paid in Capital in excess of par-Common Stock $57000 Cr
Explanation:
The entry to record the issuance of common stock against cash at a price higher than par will require a debit to the cash account which is an asset and is increasing as a result of the transaction. The debit will be for the amount for which shares are being issued.
Cash = 13 * 19000 = $247000
The credit part of the entry will contain a credit to common stock for the amount of par value.
Common stock = 10 * 19000 = $190000
The remaining will be credited to a separate account which is a reserve account and which will be credited as a result of issuing for more than par.
3 * 19000 = $57000