When 100 shares of $1 par value Common Stock are issued at $25 per share,Paid-in Capital in Excess of Par-Common will:

Question

Quizplus · Accepted Answer

The total amount received from the issuance of 100 shares of $1 par value Common Stock at $25 per share is $2,500 (100 shares x $25 per share). The par value of the shares is $100 (100 shares x $1 par value per share). Thus, the Paid-in Capital in Excess of Par-Common is the difference between the total amount received and the par value, which is $2,500 - $100 = $2,400. Therefore, the correct answer is C.

When 100 Shares of $1 Par Value Common Stock Are