Where is par value typically recorded?

Par value is typically recorded in the common stock account. This is because par value represents the nominal or face value of a company's stock as stated in the corporate charter, and it is the minimum value at which shares can legally be issued. When shares are sold, the par value of those shares is credited to the common stock account, while any amount received in excess of par value is recorded separately in the additional paid-in capital or capital surplus.

This accounting treatment ensures that the company's books reflect both the basic value of the equity as defined by par value and any additional contributions made by shareholders. Therefore, in the context of recording stock transactions, the common stock account is the designated place for capturing the par value of issued shares.