Additional Paid-in Capital

Additional paid-in capital is generally contributed capital in excess of par or stated value. It can also arise from many other different types of transactions. Examples include the sale of treasury stock at a "gain," the issuance of liquidating dividends, the conversion of bonds, and the declaration of a small stock dividend. Additional paid-in capital from these sources may be aggregated and shown as one amount on the balance sheet. See also common stock and retained earnings.