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Berne Ltd.was organized on January 1, 2017, with 300,000 no par value common shares authorized.During 2017, the corporation had the following share transactions:
-The total amount in the Common Shares account at December 31, 2017 is

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Use the following information to answer questions 
Berne Ltd.was organized on January 1, 2017, with 300,000 no par value common shares authorized.During 2017, the corporation had the following share transactions: 
-The total amount in the Common Shares account at December 31, 2017 is

Quizplus · Accepted Answer

To calculate the total amount in the Common Shares account, we need to add up the amounts received from each transaction:
- 100,000 shares were issued for $20 per share: 100,000 x $20 = $2,000,000
- 50,000 shares were issued for equipment with a fair value of $16 per share: 50,000 x $16 = $800,000
- 10,000 shares were issued for legal services with a fair value of $17 per share: 10,000 x $17 = $170,000
- 5,000 shares were reacquired for $22 per share: 5,000 x $22 = $110,000

Total amount in Common Shares account = $2,000,000 + $800,000 + $170,000 - $110,000 = $2,016,250.  Therefore, the best choice is B.

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