C&S Corporation issued 1,000 shares of its $4 par value common stock for $12 per share.What amount would they record as additional paid-in-capital?

Question

Quizplus · Accepted Answer

The total amount received from issuing the 1,000 shares of common stock is: 
$12 x 1,000 = $12,000

The par value of the stock is: 
$4 x 1,000 = $4,000

Therefore, the amount recorded as additional paid-in-capital is: 
$12,000 - $4,000 = $8,000

C&S Corporation Issued 1,000 Shares of Its $4 Par Value