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Record Stock Issue a. When stock is sold at a price above its par value, what amount is
Chapter 21, Problem 2(choose chapter or problem)
Record Stock Issue
a. When stock is sold at a price above its par value, what amount is credited to the capital stock account?
b. What is the classification of the Paid-in Capital in Excess of Par account? What is its normal balance?
Questions & Answers
QUESTION:
Record Stock Issue
a. When stock is sold at a price above its par value, what amount is credited to the capital stock account?
b. What is the classification of the Paid-in Capital in Excess of Par account? What is its normal balance?
ANSWER:Step 1 of 3
Par value means the face value of the stock or bond. It is considered an important measure to calculate the value of an instrument or bond as it is helpful in calculating the maturity value.