Century Corporation issued 400,000 $4 par value ordinary shares at the time of its incorporation. The share was issued for cash at a price of $16 per share. During the first year of operations, the company sustained a net loss of $100,000. The year-end balance sheet would show the balance of the Ordinary Share account to be:

Question

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The Ordinary Share account is recorded at par value. With 400,000 shares at a $4 par value, the balance is 400,000 x $4 = $1,600,000.

Century Corporation Issued 400,000 $4 Par Value Ordinary Shares at the Time