If a firm issues 10,000 shares of common stock with a par value of $5 and for a sales price of $15, what amount would be recorded in the capital paid-in excess of par account?
A) $10,000
B) $15,000
C) $50,000
D) $100,000

Question

Quizplus · Accepted Answer

The capital paid-in excess of par is calculated by subtracting the par value from the sales price and then multiplying by the number of shares. Here, ($15 - $5) * 10,000 = $100,000.

If a Firm Issues 10,000 Shares of Common Stock with a Par