The Eaton Company was incorporated July 10, 19X0, with an authorized capital as follows:

1. Common stock, Class A, 20,000 shares, par value \(\$ 25\) per share.

2. Common stock, Class \(B, 100,000\) shares, par value \(\$ 5\) per share.

The capital stock account in the general ledger is credited with only one item in the year 19X0. This represents capital stock sold for cash, at par, as follows:

1. Class A, 12,000 shares.

2. Class \(B, 60,000\) shares.

The sum of open certificate stubs in the stock certificate books at December \(31,19 X 0\) indicates that 82,000 shares of stock were outstanding.

Required:

a. State possible explanations for this apparent discrepancy.

b. State the procedures you would perform to determine the cause of the discrepancy.