Can anybody explain me what is this account? How does it affect a financial status of a business? I've read the definition on investopidia, so please don't just give me a definition.

Do you understand the Account Additional Paid in Capital (APIC)? It is pretty much just a different name for that account. I don't know anyone who calls it Contributed Capital in the real world but whatever…

Let me know if you need to me explain APIC.

I think I do need an explanation for APIC. ACtually, I'm doing bonds convertible and bonds with warrant. We use this account but I really have no idea about this account. And then when we convert the bonds to common share, we credit retained earning also. How can it be?

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Originally Posted by Cynthia514

I think I do need an explanation for APIC. ACtually, I'm doing bonds convertible and bonds with warrant. We use this account but I really have no idea about this account. And then when we convert the bonds to common share, we credit retained earning also. How can it be?

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Give me an example of the question would would be asked and what the correct J/E would be and I can tell you why or how it was done.

I haven't done these kinds of calculations since I was in school so I don't remember it all off hand.