When common stock is sold to the public at more than its par value, the excess is reported as
A) paid-in-capital.
B) treasury stock reserves.
C) a current liability.
D) a stated value account balance.

Question

Quizplus · Accepted Answer

When common stock is sold to the public at more than its par value, the excess is reported as paid-in-capital. This reflects the amount received by the company over and above the par value of the stock, which represents the minimum amount that the stock can be issued for. It is not reported as treasury stock reserves, a current liability, or a stated value account balance.

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