On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.
The par value goes to capital stock and the difference between the par value and the issue price goes to Additional paid-in Capital.
in May 2 transaction, Par Value is $5 and premium is $7. The entry would be
Common Stock 60,000 ( 12,000 ...
The solution explains the correct entry to be made for some capital stock transactions undertaken by Art Wyatt Corporation