Answer:
Book value of Common stock par account is $1,800,000
and the Additional paid-in capital account $2400,000.
Explanation:
Authorized Common stock is the maximum numbers of share a company is permitted to issue.
Outstanding shares are those share which are issued and held by the stockholders.
Number shares outstanding = 600,000
Par value = $3
Issue price = $7
The amount received above the par value of the share is the add in capital of common share or share premium.
Book value of
Common stock at par = Number of outstanding share x par value = 600,000 x $3 = $1,800,000
Additional paid-in capital account = ( $7 - $3 ) x 600000 = $4 x 600,000 = $2,400,000
