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 |
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