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-   -   Paid-in capital? (https://www.askmehelpdesk.com/showthread.php?t=323250)

  • Feb 28, 2009, 04:40 PM
    windiemar
    Paid-in capital?
    How do you calculate additional paid-in capital using just common stock?
  • Mar 1, 2009, 01:16 AM
    hamzashakaa

    When you issue a common stock there should be a par value for the stock, usually $1. now lets assume that you issued (sold) 100 common stock for $5 you will perform the following entry
    Debit cash 500
    Credit common stock (for the par value) 100
    Credit Additional paid in capital for the excess $4 400

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