When common stock with a par value is sold for a price that exceeds par value,the Common Stock account is credited for the cash proceeds received from the sale of the shares.

Question

Quizplus · Accepted Answer

When common stock with a par value is sold for a price that exceeds par value, the Common Stock account is credited for the amount equal to the par value of the shares sold, and the excess over par value is credited to an account typically called "Additional Paid-In Capital" or "Share Premium."

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