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GrogVix [38]
3 years ago
12

A company issued 260 shares of $100 par value common stock for $31,000 cash. The total amount of paid-in capital in excess of pa

r is:
Business
1 answer:
Lelu [443]3 years ago
5 0

Answer:

The total amount of paid-in capital in excess of par is: $5,000.

Explanation:

When Common Stocks are classified as par value Stocks, any price paid in excess of the par value of the Stock is accounted for in the Share Premium account.

<u>Here is the Summary of the Transaction provided.</u>

Common Stocks : 260 shares × $100 = $26,000

Paid-in capital in excess of par : $31,000 - $26,000 = $5,000

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