Question

After recording capital stock subscription, the accountant then records the difference between what? Where does this information then go?

Answer 1

The accountant records the difference between the subscription price and the par value of the stock, known as capital surplus or additional paid-in capital. This information is included in the balance sheet under the stockholders' equity section.

Step-by-step explanation:

After recording capital stock subscription, the accountant then records the difference between the subscription price and the par value of the stock. This difference is called a capital surplus or additional paid-in capital. The information about the capital surplus is then included in the company's balance sheet under the stockholders' equity section.