If common stock is issued for an amount greater than par value, the excess should be credited to
A) Cash.
B) Retained Earnings.
C) Paid-in Capital in Excess of Par Value.
D) Legal Capital.

Question

Quizplus · Accepted Answer

If common stock is issued for an amount greater than par value, the excess should be credited to Paid-in Capital in Excess of Par Value. This account shows the amount received from the sale of common stock that is in excess of its par or stated value. It is a component of stockholders’ equity and represents the additional amount paid by investors over and above the par value of the stock.

If Common Stock Is Issued for an Amount Greater Than