Additional Paid-In Capital APIC
Definition: Amount above par on issuance
Scope:ModerateDifficulty:Easy
Amount above par on issuance
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. Issue stock above par | ||
| 10,000 shares ($1 par) at $15 = $140,000 excess. | ||
| CashAsset+ | $150,000 | |
| Common StockEquity+ | $10,000 | |
| Additional Paid-In CapitalEquity+ | $140,000 | |
| APIC captures the premium over par value. | ||
| 2. Reissue treasury stock above cost | ||
| Reissue 1,000 treasury shares (cost $15,000) for $18,000. | ||
| CashAsset+ | $18,000 | |
| Treasury StockContra Equity− | $15,000 | |
| Additional Paid-In Capital — Treasury | $3,000 | |
| Excess over cost goes to APIC — Treasury. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$150,000.00
$18,000.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$168,000.00
Common StockCommon StockEquityThe owner’s residual interest in the business. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$10,000.00
Normal bal. ▶
$10,000.00
Additional Paid-In CapitalAdditional Paid-In CapitalEquityThe owner’s residual interest in the business. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$140,000.00
Normal bal. ▶
$140,000.00
Treasury StockTreasury StockAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$15,000.00
$15,000.00
Additional Paid-In Capital — TreasuryAdditional Paid-In Capital — TreasuryAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$3,000.00
$3,000.00
DurationLong-Term
External Links
- Additional paid-in capital — Wikipedia