An Additional Paid-in Capital account could be used with all of the following transactions except:
A)The issuance of par value stock at a price greater than the par value.
B)The reissuance of treasury stock at a price less than the price paid when the stock was reacquired.
C)The reissuance of treasury stock at a price greater than the price paid when the stock was reacquired.
D)The issuance of no-par stock.

Question

Quizplus · Accepted Answer

If the corporate charter does not specify a par value for the stock,the total proceeds from the stock issuance will be entered in the Common Stock account;that transaction would not include an Additional Paid-in Capital account.The entries to record the issuance of par value stock at a price greater than the par value,the reissuance of treasury stock at a price less than the price paid when the stock was reacquired,and the reissuance of treasury stock at a price greater than the price paid when the stock was reacquired all include an Additional Paid-in Capital account.

An Additional Paid-In Capital Account Could Be Used with All