True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported.

Question

Quizplus · Accepted Answer

True no-par stock is issued at its actual issue price without any additional paid-in capital reported. This is because no-par stock does not have a par value, so there is no predetermined value assigned to the shares. Therefore, any amount received from the sale of the no-par stock is recorded as the issue price in the accounts.

True No-Par Stock Should Be Carried in the Accounts at Issue