A firm issued 10,000 shares of $2 par-value common stock, receiving proceeds of $40 per share. The amount recorded for the paid-in capital in excess of par account is ________.

Question

Quizplus · Accepted Answer

The amount recorded for the paid-in capital in excess of par is calculated by subtracting the par value from the proceeds received per share and then multiplying by the number of shares. Here, ($40 - $2) * 10,000 = $380,000.

A Firm Issued 10,000 Shares of $2 Par-Value Common Stock