If common stock is issued for an amount greater than par value the excess should be credited to
A) Cash.
B) Retained Earnings.
C) Paid-in Capital in Excess of Par.
D) Legal Capital.

Question

Quizplus · Accepted Answer

When stock is issued for an amount greater than par value, the excess amount is credited to Paid-in Capital in Excess of Par. This account represents the additional amount of capital the company received from shareholders that is above and beyond the par value of the stock. It is also known as additional paid-in capital.

If Common Stock Is Issued for an Amount Greater Than