If Norben Company issues 6000 shares of $5 par value common stock for $210000

Name: If Norben Company issues 6000 shares of $5 par value common stock for $210000
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Question

Quizplus · Accepted Answer

The par value of the common stock is $5 per share, and Norben Company issued 6000 shares for $210000, which is more than their par value. Therefore, the difference between the issue price and the par value (which is $210000 - ($5 × 6000)) is $180000, and this amount is recorded in the balance sheet as Paid-in Capital in Excess of Par Value.

If Norben Company Issues 6000 Shares of $5 Par Value