The excess of the issuance price over the stated value of a no-par common stock should be credited to the
A)Common Stock account.
B)Retained Earnings account.
C)Additional Paid-in Capital.
D)Treasury Stock.

Question

Quizplus · Accepted Answer

The excess of the issuance price over the stated value of a no-par common stock is considered additional paid-in capital. This represents the amount paid by shareholders in excess of the stated value of the stock and is recorded in the Additional Paid-in Capital account. Therefore, the correct answer is C.

The Excess of the Issuance Price Over the Stated Value