Jennifer and hernando are both accountants at their companies. both companies issued new shares of common stock. when jennifer journalized her stock transaction, she credited both the common stock and the paid-in capital in excess of stated value account. when hernando journalized his stock transaction, he only credited the common stock account. what is one reason this difference may have occurred?

Question

Business

Azul

1 February, 01:32

Jennifer and hernando are both accountants at their companies. both companies issued new shares of common stock. when jennifer journalized her stock transaction, she credited both the common stock and the paid-in capital in excess of stated value account. when hernando journalized his stock transaction, he only credited the common stock account. what is one reason this difference may have occurred?

+5

Answers (1)

Know the Answer?

Susan Clark · Answer 1

Jennifer company issued their shares above face value therefore an additional capital was raised from above the face value ofthe stocks giving place to an additional paid. in

In the other case, Hernando's company issued at par giving place to no addiontal paid-in