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Cynthia514 · Jan 30, 2009, 12:48 PM

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.

codyman144 · Jan 30, 2009, 01:19 PM

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.

Cynthia514 · Jan 30, 2009, 01:22 PM

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?

codyman144 · Jan 30, 2009, 01:50 PM

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?

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.