Perry Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital-Common account will increase by

Name: Perry Corporation issues 20,000 shares of $0.50 par common stock for $6 per share; the Additional Paid-in Capital-Common account will increase by
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Additional Paid-in Capital-Common account will increase by the amount received over the par value. The calculation is (20,000 shares * $6) - (20,000 shares * $0.50 par) = $120,000 - $10,000 = $110,000.

Perry Corporation Issues 20,000 Shares of $0