Cerner Corporation began business by issuing 250,000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $50,000. The year-end balance sheet would show
A) Common Stock of $1,250,000.
B) Common Stock of $6,000,000.
C) total paid-in capital of $5,950,000.
D) total paid-in capital of $4,750,000.

Question

Quizplus · Accepted Answer

The common stock is recorded at par value, which is $5 per share. Therefore, 250,000 shares at $5 par value results in a Common Stock value of $1,250,000.

Cerner Corporation Began Business by Issuing 250,000 Shares of $5