Final answer:
It's true that common shares with a stated value are recorded in the same manner as par value stock. Both involve crediting the common stock account for the par or stated value and any additional payments received into the additional paid-in capital account.
Step-by-step explanation:
The statement that common shares issued with a stated value are recorded in the same manner as par value stock is true. Both stated value stock and par value stock are recorded by listing the number of shares issued multiplies by their stated or par value, respectively, in the common or preferred stock account. Any excess over the stated or par value is recorded in a separate account, typically entitled 'Additional Paid-In Capital' or 'Paid-In Capital in Excess of Stated Value'.
When a company issues common stock, the accounting entry includes a credit to the common stock account for the total value that corresponds to the par or stated value of the shares issued, and the remainder of the funds received, if any, are credited to the additional paid-in capital account. The key difference is the terminology and that with no-par stock, the board of directors assigns a stated value to satisfy state legal requirements.