Additional paid-in capital increases total stockholders' equity. For example, a corporation records its common stock with a par value of $1. It then issues the stock The account represents the excess paid by an investor over the par-value price of a stock issue. Additional paid-in-capital can arise from issuing either preferred If a company still sets a par value on its stock, often a token or nominal amount the par value line, and $9 would go on the paid capital in excess of par value line , board of directors could require shareholders to contribute additional capital, The stock is listed under shareholder equity as common or preferred stock. The additional paid-in capital account in excess of the par value shows any amount
Shares Issued $120,000 Common Stock, ? Par, 10,000 Shares Authorized, 7,000 Shares Issued 70,000 Additional Paid-in Capital Preferred 6,000 Additional Common stock (par value x number of common shares issued) Additional paid in capital, preferred stock ( [issue price - par value] x number of preferred shares
The par amount is credited to Common Stock. The actual amount received for the stock minus the par value is credited to Paid-in Capital in Excess of Par Value. Since that's the legal capital, we will attribute the amount to the common stock account. The rest of the amount (issue price – par value per share) would be
The stock is listed under shareholder equity as common or preferred stock. The additional paid-in capital account in excess of the par value shows any amount Paid in Capital is the contributed capital and additional paid in capital during common or preferred stock issuances and the par value of the shares. The paid in The is commonly is referred to as additional paid-in capital. While par value capital is listed in the first line of the shareholders' equity section under common stock,
The stock is listed under shareholder equity as common or preferred stock. The additional paid-in capital account in excess of the par value shows any amount Paid in Capital is the contributed capital and additional paid in capital during common or preferred stock issuances and the par value of the shares. The paid in The is commonly is referred to as additional paid-in capital. While par value capital is listed in the first line of the shareholders' equity section under common stock, Convertible Preferred Stock, Common Stock. Additional. Paid-In. Accumulated. Shares, Amount, Shares, Par Value, Capital, Deficit, Total. Inception, January 8