in-a-scenario-where-a-company-issues-stock-without-specifying-par-value-what-is-

Question

In a scenario where a company issues stock without specifying par value, what is the appropriate accounting treatment?

Accepted Answer

Record all proceeds in the common stock account.

Answer

Do not record the transaction until par value is specified.

Answer

Record proceeds in both common stock and additional paid-in capital accounts.

Answer

Record proceeds in a separate equity account.