The issue of $1 par value common stock for $10 per share results in a $9 credit to the Additional paid-in capital account for each share issued.

Question

Quizplus · Accepted Answer

This is true because the difference between the par value and the issuance price is considered additional paid-in capital. In this case, the difference is $9 ($10 issuance price minus $1 par value), resulting in a $9 credit to the additional paid-in capital account for each share issued.

The Issue of $1 Par Value Common Stock for $10