Question

A company issued 120 shares of $100 par value common stock for $14,200 cash. The total amount of paid-in capital in excess of par is:

Answer 1

The answer is simply $2,200.

Step-by-step explanation:

• Par value of common stock means the price of the stock as stated in the company's charter.
• The amount paid-in capital in excess of par connotes that the actual cash received for the common stock purchased by subscribers is more than the par value by a certain amount

Based on the information provided in the question, the total amount of paid-in capital in excess of par is: $14,200 - (120 shares x $100) = $2,200.