Team Spirit, Inc., issues 240,000 shares of no par common stock for $5 per share. The journal entry is:

Cash

240,000

Common Stock

240,000

Cash

1,200,000

Common Stock

240,000

Gain on the Sale of Stock

960,000

Cash

1,200,000

Common Stock

1,200,000

Cash

1,200,000

Common Stock

480,000

Paid in Capital in Excess of Stated Value—Common

720,000