A firm issued 10,000 shares of $2 par-value common stock and received proceeds of $40 per share. The problem asks to find the amount recorded for the paid-in capital in excess of par account.

1. Problem Description

A firm issued 10,000 shares of $2 par-value common stock and received proceeds of$40 per share. The problem asks to find the amount recorded for the paid-in capital in excess of par account.

2. Solution Steps

First, calculate the total proceeds received from the issuance of shares:

Total Proceeds = Number of Shares * Proceeds per Share

Total Proceeds = $10,000 *$40 = $400,000$

Next, calculate the par value of the shares issued:

Total Par Value = Number of Shares * Par Value per Share

Total Par Value = $10,000 *$2 = $20,000$

Finally, calculate the paid-in capital in excess of par, which is the difference between the total proceeds and the total par value:

Paid-in Capital in Excess of Par = Total Proceeds - Total Par Value

Paid-in Capital in Excess of Par = $400,000 -$20,000 = $380,000$

3. Final Answer

The amount recorded for the paid-in capital in excess of par account is $380,

0

0

0. So the answer is a. $380,000.