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A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be ________. A. $1.985. B. $12,000. C. $15. D. $10,150.
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A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional paid-in capital would be ________.

A. $1.985.
B. $12,000.
C. $15.
D. $10,150.

User Joel McCracken
by
3.1k points

1 Answer

9 votes
9 votes

Answer: $11,985

Step-by-step explanation:

The credit to the Additional paid-in capital is the excess over the pa value of the stock that was sold. The formula is therefore:

Additional paid-in capital = Cash stock was sold for - Par value of stock

Par value of stock = 30 shares * 0.50

= $15.00

Additional paid-in capital = 12,000 - 15

= $11,985

User Michael Hancock
by
3.2k points
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