Clothing Emporium was organized on January 1,2018.The firm was authorized to issue 100,000 shares of $5 par value common stock.During 2018,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 2018?

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Quizplus · Accepted Answer

The Common Stock account is recorded at par value. The firm issued 50,000 shares (30,000 + 20,000) at a par value of $5, so the total amount recorded in the Common Stock account is 50,000 shares x $5 = $250,000.

Clothing Emporium Was Organized on January 1,2018