When 30,000 shares of $10 par-value common stock are issued at $30 per share, Paid-In Capital in Excess of Par, Common Stock is credited for

Question

Quizplus · Accepted Answer

The common stock account will be credited for the par value of the shares issued, which is $10 x 30,000 = $300,000. The difference between the issue price and par value ($30 - $10 = $20) will be credited to the account called "Paid-In Capital in Excess of Par, Common Stock". Therefore, the answer is $20 x 30,000 = $600,000.

When 30,000 Shares of $10 Par-Value Common Stock Are Issued