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Additional paid in capital is an asset to a business. If this type of capital has to be paid back to a financial institution, then it will also become an Accounts Payable or liability.
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Paid-in capital a asset or liability?
Neither, it is equity
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What type of account is paid-in capital in excess of par?
additional paid in capital
Is additional paid in capital an asset or liability?
1. Capital introduced in business is liability of business towards it's owner to payback, so if owner's introduce more capital it increases the liability of business that's why it is also liability.
Can additional paid in capital be negative?
Yes
Where does additional paid in capital belong in the elements of financial statements?
Additional paid in capital is also part of paid in capital of business and shown as an addition to already exists paid in capital of business.
Paid-in capital a asset or liability?
Neither, it is equity
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What type of account is paid-in capital in excess of par?
additional paid in capital
Is additional paid in capital an asset or liability?
1. Capital introduced in business is liability of business towards it's owner to payback, so if owner's introduce more capital it increases the liability of business that's why it is also liability.
Can additional paid in capital be negative?
Yes
Can Additional Paid In Capital be negative as presented on the balance sheet?
No
What does paid in capital account represent?
par value of common and preferred stock+additional paid in capital(amount in excess of par)
What is the journal entry to increase paid-up capital?
debit cashcredit share capital
Can additional paid-in capital have a debit balance?
When there is loss in the business the capital of partner can be in negative. Then there is need for addition of capital to run the business and capital brought can still be not enough to make it in credit. Hence the capital will still show a debit balance. However, Additional Paid-In Capital as an account has meaning only for the corporate form of business. Any amount paid by an investor for stock in excess of the stock's par value is recorded as Additional Paid-In Capital. Additional investments by partners may be recorded as contributions in the current period, but are then, like partner draws, closed to the partner's capital account.
Which element in financial statements includes additional paid-in capital?
equity
Is additional paid in capital refers to a firm's retained earnings?
Additional paid in capital (or APIC) is a component of the shareholders equity section of the balance sheet. Retained earnings is a separate component of shareholders equity.
