When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for an amount equal to the cash proceeds.

Name: When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for an amount equal to the cash proceeds.
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Question

Quizplus · Accepted Answer

When common stock is sold above par value, the Common Stock account is credited only for the par value amount, and any excess is credited to an additional paid-in capital account.

When Common Stock with a Par Value Is Sold for a Price