If Novak Corp. issues 6000 shares of $10 par value common stock for $410000, the account Paid-in Capital in Excess of Par Value will be credited for $60000. Common Stock will be credited for $60000. Paid-in Capital in Excess of Par Value will be credited for $410000. Cash will be debited for $350000.

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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.