The difference between the issue price per share of common stock and the par value per share of the stock is credited to:
A)Retained Earnings.
B)Common Stock.
C)Paid-in Capital in Excess of Par-Common.
D)Goodwill.

Question

Quizplus · Accepted Answer

The difference between the issue price per share of common stock and the par value per share of the stock is known as the "paid-in capital in excess of par-common" account. This amount represents the amount of money that shareholders paid over and above the par value of the shares. It is a component of the total equity of the company and is not related to any specific asset or liability. Therefore, the correct answer is C - "Paid-in Capital in Excess of Par-Common."

The Difference Between the Issue Price Per Share of Common