Kerwin Packaging Corporation began business in 2013 by issuing 40,000 ordinary shares with a $5 par for $8 per share and 10,000 preference shares of 6%, $10 par at par. At year end, the common share had a market value of $10. On its December 31, 2014, statement of financial position, Kerwin Packaging would report

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The Share Capital-Ordinary is calculated based on the par value of the shares issued. Kerwin Packaging issued 40,000 ordinary shares with a $5 par value, so the Share Capital-Ordinary is 40,000 shares * $5 = $200,000.

Kerwin Packaging Corporation Began Business in 2013 by Issuing 40,000