Final answer:
Paid-in Capital in Excess of Par Value is reported as part of paid-in capital on the balance sheet and normally has a credit balance; it is related to the amount received over the par value of stock issued. The correct option is a.
Step-by-step explanation:
The term Paid-in Capital in Excess of Par Value refers to the amount of capital received from investors over and above the par value of the stock issued and is reported as part of paid-in capital on the balance sheet. Specifically, answer choice B) is reported as part of paid-in capital on the balance sheet, correctly defines this term. It does not represent the amount of legal capital (which is generally the par value multiplied by the number of shares issued) and normally has a credit balance, not a debit balance. When no-par stock is issued without a stated value, then by definition, there can't be 'excess' over par; hence, option A) is not applicable in this scenario.
Paid-in Capital in Excess of Par Value:
A) When no-par stock does not have a stated value, it is credited.
B) It is reported as part of paid-in capital on the balance sheet.
C) It represents the amount of legal capital.
D) Normally, it has a debit balance.