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If the Big City Dwellers sold their

If the Big City Dwellers sold their - excess of par...

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If the Big City Dwellers sold their $1 par value stock for $5 per share, they would receive $25,000  (5,000 shares × $5 per share) and would record the difference between the $5,000 par value of the  stock (5,000 shares × $1 par value per share) and the cash received as additional paid-in-capital in 
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Unformatted text preview: excess of par value (often called additional paid-in-capital). General Journal Date Account Title and Description Ref. Debit Credit 20X0 June 1 Cash 25,000 Common Stock (5,000 × $1) 5,000 Additional Paid-in-Capital 20,000 Sale of 5,000 shares of stock at $5 per share...
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