Answer:
b. Cash 5,400 Debit
Common Stock 1,200 Credit
Paid-in Capital in Excess of Par 4,200 Credit
Explanation:
the cash proceeds will be for 5,400
common stock will increase for the face value:
600 shares x 2 = 1,200
the paid-in capital in excess of par value will be the difference:
5,400 - 1,200 = 4,200
Cash, which is an asset increase for mdebit side while the common stock and additional paid-in are equity accounts. They increase from the credit side.
