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:

Question

Azul Abbott

Business

18 September, 04:40

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:

+1

Answers (1)

Know the Answer?

Nguyen · Answer 1

Credit common stock by 20,000

Credit additional paid in capital by 20,000

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.