Final answer:
The Paid-in Capital in Excess of Par Value account represents the amount that investors have paid above the par value of the shares they purchased. It is associated with common stock and preferred stock.
Step-by-step explanation:
The Paid-in Capital in Excess of Par Value account is treated as an addition to the common stock account on the balance sheet. The Paid-in Capital in Excess of Par Value account represents the amount that investors have paid above the par value of the shares they purchased. It is associated with common stock and preferred stock.
It represents the amount that investors have paid above the par value of the shares they purchased. This account is associated with common stock and preferred stock, as both types of stock can have amounts in excess of their respective par values.