No-par stock that is assigned a stated value by the board of directors is accounted for in virtually the same way as par value stock.

Question

Quizplus · Accepted Answer

No-par stock with a stated value is still considered a capital stock, and its issuance is recorded as such. The only difference is that instead of using a par value, the company assigns a stated value to the stock. The accounting treatment for the issuance and subsequent transactions involving no-par stock with stated value is virtually the same as par value stock.

No-Par Stock That Is Assigned a Stated Value by the Board