Danley Corporation began business by issuing 200,000 shares of $5 par value common stock for $24 per share.During its first year, the corporation sustained a net loss of $40,000.The year-end balance sheet would show
A)Common Stock of $1,000,000.
B)Common Stock of $4,800,000.
C)total paid-in capital of $4,760,000.
D)total paid-in capital of $3,800,000.

Question

Quizplus · Accepted Answer

The common stock is recorded at par value, which is $5 per share. Therefore, 200,000 shares x $5 = $1,000,000.

Danley Corporation Began Business by Issuing 200,000 Shares of $5