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Paid-In Capital in Excess of Stated Value

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$15.99

Paid-In Capital in Excess of Stated Value 1. If stock is issued for less than par value, the account a. Paid-In Capital in Excess of Par Value is credited. b. Paid-In Capital in Excess of Par Value is debited if a debit balance exists in the account. c. Paid-In Capital in Excess of Par Value is debited if a credit balance exists in the account. d. Retained Earnings is credited. 2. The sale of common stock below par a. is a common occurrence in most states. b. is not permitted in most states. c. is a practice that most shareholders encourage. d. requires that a liability be recorded for the difference between the sales price and the par value of the shares. 3. Paid-In Capital in Excess of Stated Value a. is credited when no-par stock does not have a stated value. b. is reported as part of paid-in capital on the balance sheet. c. represents the amount of legal capital. d. normally has a debit balance. 4. A separate paid-in capital account is used to record each of the following except the issuance of a. no-par stock. b. par value stock. c. stated value stock. d. treasury stock above cost. 5. Becker Company is a publicly held corporation whose $1 par value stock is actively traded at $20 per share. The company issued 2,000 shares of stock to acquire land recently advertised at $50,000. When recording this transaction, Becker Company will a. debit Land for $50,000. b. credit Common Stock for $40,000. c. debit Land for $40,000. d. credit Paid-In Capital in Excess of Par Value for $48,000. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Paid-In Capital in Excess of Stated Value

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