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

Question

Quizplus · Accepted Answer

The excess amount over the par value of common stock is credited to Paid-in Capital in Excess of Par. This account represents the additional amount received by a company over and above the par value of common stock. It is a part of the shareholder's equity section of the balance sheet.

If Common Stock Is Issued for an Amount Greater Than