On January 2, Year 1, Torres Corporation issued 16,000 shares of $12 par-value common stock for $16 per share. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The paid-in capital in excess of par value account will increase by $64,000 because the shares were issued at $4 above the par value ($16 - $12 = $4), and 16,000 shares were issued, resulting in an excess of $64,000 (16,000 shares x $4).

On January 2, Year 1, Torres Corporation Issued 16,000 Shares