If a corporation issues par value common stock and the proceeds are less than par value,the
Common Stock account is credited for the par value.

Question

Quizplus · Accepted Answer

When a corporation issues par value common stock, the Common Stock account is credited for the par value of the shares, regardless of the proceeds received. Any difference between the proceeds and par value is recorded in additional paid-in capital or a similar account.

If a Corporation Issues Par Value Common Stock and the Proceeds