Ask Experts Questions for FREE Help !
Ask
    windiemar's Avatar
    windiemar Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 28, 2009, 04:40 PM
    Paid-in capital?
    How do you calculate additional paid-in capital using just common stock?
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Mar 1, 2009, 01:16 AM

    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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Paid in capital versus earned capital [ 1 Answers ]

Why is it important to keep paid in capital separate from earned capital?

Importance of keeping paid in capital separate from earned capital [ 2 Answers ]

In all of the reading I've done, it has described what paid in capital is and what earned capital is. However, I can't seem to find anything specific about why it is important to keep them separate. My guess it that Paid in Capital is money that is used in the operations of the business and are to...

Why keep paid in capital separate from earned capital [ 1 Answers ]

Why keep paid in capital separate from earned capital

View more questions Search