Final Answer:
The par value of the common stock is $6.00 per share.
Step-by-step explanation:
Step 1: Calculate the total paid-in capital per share.
Paid-in capital represents the total amount received from investors in exchange for shares of common stock. In this case, the firm has $10,000 in paid-in capital and issued 1,000 shares of common stock. Therefore, the total paid-in capital per share is:
Paid-in capital per share = Total paid-in capital / Number of shares issued
Paid-in capital per share = $10,000 / 1,000 shares
Paid-in capital per share = $10.00 per share
Step 2: Calculate the par value of the common stock.
The common stock account represents the par value of all outstanding shares. In this case, the firm has $4,000 in its common stock account, and we know the total paid-in capital per share from step 1. Therefore, we can calculate the par value of the common stock as:
Par value per share = Common stock account / Paid-in capital per share
Par value per share = $4,000 / $10.00 per share
Par value per share = $4.00 per share
However, there might be additional paid-in capital beyond the par value. To account for this, we need to subtract the common stock account from the total paid-in capital:
Additional paid-in capital = Total paid-in capital - Common stock account
Additional paid-in capital = $10,000 - $4,000
Additional paid-in capital = $6,000
Since the additional paid-in capital represents the amount paid by investors above the par value, we need to divide it by the number of shares issued to find the additional paid-in capital per share:
Additional paid-in capital per share = Additional paid-in capital / Number of shares issued
Additional paid-in capital per share = $6,000 / 1,000 shares
Additional paid-in capital per share = $6.00 per share
Therefore, the par value of the common stock is $4.00 per share, and the additional paid-in capital per share is $6.00 per share. This means that investors paid a total of $10.00 per share for their stock.