A firm issued 10,000 shares of no par-value common stock, receiving proceeds of $40 per share. The amount recorded is ________.

Question

Quizplus · Accepted Answer

Since the stock is no par value, the entire proceeds from the issuance, which is $40 per share for 10,000 shares (totaling $400,000), are recorded in the Common Stock account. There is no par value to allocate, so nothing is recorded in the Paid-in Capital in Excess of Par account.

A Firm Issued 10,000 Shares of No Par-Value Common Stock