A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred stock for a lump sum of $236,000. At the issuance, the market price of the common shares is $80 each and market price of the preferred is $300 each. In the journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of Par – Common Stock?

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.