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

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The paid-in capital in excess of par is calculated as the difference between the issue price and the par value, multiplied by the number of shares: ($40 - $2) * 10,000 = $380,000.

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