When common stock is issued,the amount recorded in Additional paid-in capital is ________.
A)the cash received minus the amount recorded in the Common stock account
B)the cash received plus the amount received in excess of par
C)the par value plus the market price of the stock
D)nothing; Additional paid-in capital is not affected by issuing common stock

Question

Quizplus · Accepted Answer

The amount recorded in Additional Paid-In Capital when common stock is issued is the cash received minus the amount recorded in the Common Stock account. This typically represents the excess of the amount received over the par value of the stock.

When Common Stock Is Issued,the Amount Recorded in Additional Paid-In