The two equity accounts that Total Paid-in Capital is split between are
A)capital stock at par and owners' equity.
B)capital stock at par and paid-in capital in excess of par.
C)capital stock at par and stockholders' equity.
D)paid-in capital in excess of par and owners' equity.
E)paid-in capital in excess of par and stockholders' equity.

Question

Quizplus · Accepted Answer

Total Paid-in Capital consists of two equity accounts, which are Capital Stock at Par and Paid-in Capital in Excess of Par. Capital Stock at Par represents the amount received by the company from issuing its shares at their stated par value, while Paid-in Capital in Excess of Par represents the excess amount paid by investors over the stated par value of the shares. Therefore, option B (Capital Stock at Par and Paid-in Capital in Excess of Par) is the correct answer.

The Two Equity Accounts That Total Paid-In Capital Is Split