Spridget Company has 1 million shares of common stock authorized with a par value of $3per share,

Question:

Spridget Company has 1 million shares of authorized with a of $3 per share, of which 600,000 shares are outstanding. The company received $7 per share when it issued shares to the public.

Required:
What is the book value of the Common stock par account and the Additional paid-in capital account?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...