A company issued 60 $100 par value ordinary shares for $7,000 cash. The total amount of share premium is:

Name: A company issued 60 $100 par value ordinary shares for $7,000 cash. The total amount of share premium is:
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Question

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The share premium is calculated as the amount received over the par value of the shares. The company issued 60 shares at $100 par value, totaling $6,000 (60 shares * $100). They received $7,000 in cash for these shares. The share premium is the difference: $7,000 - $6,000 = $1,000.

A Company Issued 60 $100 Par Value Ordinary Shares for $7,000