On February 1,authorized common stock was sold on a subscription basis at a price in excess of par value,and 20 percent of the subscription price was collected.On May 1,the remaining 80 percent of the subscription price was collected.Additional Paid-In Capital would increase on February 1 May 1

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Additional Paid-In Capital would increase on February 1 because the shares were sold for a price in excess of par value. However, there would be no increase in Additional Paid-In Capital on May 1 because the remaining 80 percent of the subscription price was just a collection of the amount owed and not new money coming in.

On February 1,authorized Common Stock Was Sold on a Subscription