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4 votes
Nash's trading post, llc issues 2000 shares of $10 par value common stock at $11 per share. when the transaction is recorded, credits are made to:

User Or Cohen
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1 Answer

4 votes

Answer:

Credit common stock by 20,000

Credit additional paid in capital by 20,000

Step-by-step explanation:

The par value of the share are $10 per share the number of shares are 2000 so initially we will credit common stock by (2000*10) = 20,000

Then we will credit the additional paid in capital by (11-10)*(2,000) =2000 as it is the additional money that we are getting on the par value.

User Cornernote
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