Additional Paid-In Capital APIC
Definition: Amount above par on issuance
ModerateEasy
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. | ||
| Cash | $150,000 | |
| Common Stock | $10,000 | |
| Additional Paid-In Capital | $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. | ||
| Cash | $18,000 | |
| Treasury Stock | $15,000 | |
| Additional Paid-In Capital — Treasury | $3,000 | |
| Excess over cost goes to APIC — Treasury. | ||
DurationLong-Term
External Links
- Additional paid-in capital — Wikipedia