Joe’s Fence Company issued 800 shares of no-par common stock for $7,200. Which of the following would occur if the stock has stated value of $2 per share?Select a Choice Belowcurrent question choicesOptionAIncrease Cash and increase Common Stock for $7,200.OptionBIncrease Cash for $7,200 and increase Common Stock $1,600 and Paid-in Capital in Excess of Par $5,600.OptionCIncrease Cash for $7,200 and increase Common Stock for $ 1,600 and Paid-in Capital in Excess of Stated Value for $5,600.OptionDDecrease Common Stock and decrease Cash for $7,200.

Paid-in Capital in Excess of Stated Value = Issue value - Par value of shares = $7,200 - 800 shares…

Answered: Joe’s Fence Company issued 800 shares…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 15E

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Select a Choice Below

current question choices

OptionA

Increase Cash and increase Common Stock for $7,200.
OptionB

Increase Cash for $7,200 and increase Common Stock $1,600 and Paid-in Capital in Excess of Par $5,600.
OptionC

Increase Cash for $7,200 and increase Common Stock for $ 1,600 and Paid-in Capital in Excess of Stated Value for $5,600.
OptionD

Decrease Common Stock and decrease Cash for $7,200.

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