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16 December, 06:55

Began business by issuing 5,000 shares of $5 par value common stock. The contributed capital of $30,000, from this sale, was deposited in the company bank account.

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  1. 16 December, 10:09
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    Paid-in Capital would be credited with $5,000

    Explanation:

    The double entry would be as under:

    Dr Bank Account $30,000

    Cr Common Stock $25,000 ... $5 per share * 5,000 shares

    Cr Paid In Capital $5,000 ... ($30,000 amount receive - Common stock)
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