When a share of stock is first sold, the amount received by the company may be different from the amount printed on the stock certificate. Any amount over that printed amount will be recognized in which of the following accounts?
A) Common Stock.
B) Retained Earnings
C) Revenue from Stock Sales
D) Additional Paid-In Capital
E) Long-Term Investment

Question

Quizplus · Accepted Answer

The amount over the par value (the amount printed on the stock certificate) received by the company when a share of stock is first sold is recognized in the "Additional Paid-In Capital" account. This account reflects the extra amount investors are willing to pay over the par value of the stock.

When a Share of Stock Is First Sold, the Amount