Damon Company sold 10,000 shares of $1 par value common stock.The selling price was $9.00 per share.After the sale,what is the capital in excess of par value?

Question

Quizplus · Accepted Answer

The capital in excess of par value is calculated by subtracting the par value from the selling price and then multiplying by the number of shares sold. Here, ($9.00 - $1.00) * 10,000 = $8.00 * 10,000 = $80,000.

Damon Company Sold 10,000 Shares of $1 Par Value Common