Fannie Mae-No Politics (FNMA)

[imtheshadow]

Yanks, there are hundreds of sites explaining that paid-in-capital is ALWAYS credited for net proceeds above par. Here's just one:

https://www.accountingtools.com/articles/2017/5/17/stock-accounting

The Sale of Stock for Cash

The structure of your journal entry for the cash sale of stock depends upon the existence and size of any par value. Par value is the legal capital per share, and is printed on the face of the stock certificate.

If you are selling common stock, which is the most frequent scenario, then you record a credit into the Common Stock account for the amount of the par value of each share sold, and an additional credit for any additional amounts paid by investors in the Additional Paid-In Capital account. You record the amount of cash received as a debit to the Cash account.

For example, Arlington Motors sells 10,000 shares of its common stock for $8 per share. The stock has a par value of $0.01. Arlington records the share issuance with the following entry:

Debit Credit
Cash 80,000
Common Stock ($0.01 par value) 100
Additional paid-in capital 79,900