The excess of the issuance price over the stated value of a no-par common stock should be credited to the
A) Common Stock account.
B) Preferred Stock account.
C) Additional Paid-in Capital.
D) Treasury Stock.

Question

Quizplus · Accepted Answer

The excess of the issuance price over the stated value of a no-par common stock should be credited to the Additional Paid-in Capital account. This account represents the amount by which a company's stock has been sold above its par value, allowing the company to raise additional funds that can be used for various purposes such as research and development, expansion or debt repayment. Therefore, choice C is the best answer.

The Excess of the Issuance Price Over the Stated Value