Clothing Emporium was organized on January 1,2015.The firm was authorized to issue 100,000 shares of $5 par value common stock.During 2015,Clothing Emporium had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
What is the total amount recorded in the Common Stock account at the end of 2015?

Question

Quizplus · Accepted Answer

The Common Stock account is recorded at par value. 30,000 shares at $5 par value = $150,000 and 20,000 shares at $5 par value = $100,000. Total = $250,000.

Clothing Emporium Was Organized on January 1,2015