Holden Packaging Corporation began business in 2020 by issuing 90,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par.At year-end, the common stock had a market value of $10.On its December 31, 2020 balance sheet, Holden Packaging would report
A)Common Stock of $900,000.
B)Common Stock of $450,000.
C)Common Stock of $720,000.
D)Paid-In Capital of $675,000.

Question

Quizplus · Accepted Answer

Common Stock is reported at par value, which is $5 per share. Therefore, 90,000 shares at $5 par value equals $450,000.

Holden Packaging Corporation Began Business in 2020 by Issuing 90,000