Question

A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:

Answer 1

$2,400

Step-by-step explanation:

For par stated shares, any amount paid in excess of the par value is called paid-in capital in excess of par and is included in shareholders equity reserves.

So, from the total price remove the par value price of 130 shares to determine the paid-in capital in excess of par.

Paid-in capital in excess of par = Total Paid - Price at Par

= $15,400 - (130 shares × $100)

= $2,400