Paid In Capital (PIC) is the amount that is overpaid (or underpaid) for an item purchased using stock.

Example 1:
If you purchase a $190 iPod touch by exchanging 10 shares of capital stock with a par value of $14
the paid in capital would be a credit of $50 ($14 per share *10 shares = $140)

iPod touch            $190
    Paid in Capital               50
    Capital stock                140

Example 2:
If you purchase a $290 iPod touch by exchanging 10 shares of capital stock with a par value of $32
the paid in capital would be a debit of $30 ($32 per share *10 shares = $320)

iPod touch            $290
Paid in Capital          30
    Capital stock                320