What Are the Components of Paid-In Capital in a Corporation?

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Paid-in capital in a corporation is typically made up of a few particular components. Find out about the components of paid-in capital in a corporation with help from an accounting professional in this free video clip.

Part of the Video Series: Accounting & Finance
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Video Transcript

Hi, I'm Lori Greer from Atlanta, Georgia. I'm here to answer the question what are the components of paid-in capital in a corporation. The paid-in capital component reports the amounts the corporation received when issued its common and preferred stock if any. The stock had a par value, the total par value of each class of stock is reported in a separate par account. Any amount received that was greater than the par amount is reported in an account such as premium on common or paid in-capital in excess of par common stock. I'm Lori Greer from Atlanta, Georgia, and we just discussed the components of paid in-capital in a corporation.


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