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General Accounting Discussions: Additional paid in capital and Paid in capital?

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    • CommentAuthormountain
    • CommentTimeJun 4th 2008
     
    Hi, I was wondering in what situation do you use APIC and PIC? Thanks
    • CommentAuthormomma4_5
    • CommentTimeJun 8th 2008
     
    Anything to do with stocks. APIC (Additional Paid in Capital) is credited when stock is sold above the par value. The paid in capital is the par value of the stock.

    For instance, say xyz company sells 1000 shares of it's $25 par common stock for $45 dollars. This would be your journal entry:

    Cash 45000 (1000 X $45)
    Common Stock 25000 (1000 X $25 par value)
    APIC- Common stock 20000 (1000 X $20 above par value)

    Hope this helps...

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