A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

The options to the question are missing. The complete question is,

A corporation sold 14,000 shares of its $1 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

A: A credit to common stock for $14000

B. A debit to common stock for $14000

C. A credit to common stock $ 10000

D. A debit to common stock $ 10000

Option A. credit to common stock for $14000 is the correct answer.

The entry to record this issuance of shares is,

Cash                                                                              $182,000 Dr

    Common Stock                                                                $14,000 Cr    

    Paid in capital in excess of par- Common Stock         $168,000 Cr

Explanation:

To record the issuance of common stock against cash, we simply debit the cash account as the asset, Cash, is increasing due to the issuance of stock. We increase the cash account by the amount of cash received.

The cash received here is = 14000 * 13  =  $182000

The issuance of common stock, whose nature is capital, is recorded by a credit to Common Stock account by the value of the number of common stock issued multiplied by their par value.

Common Stock = 14000 * 1 = $14000

The value received for common stock above their par value is recorded in a separate account which is known as Paid in capital in excess of par- Common Stock. This is a reserve account and is capital in nature. Thus, it is also credited.

Paid in Capital in excess of par- Common Stock = 14000 * 12 = $168000

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.