On January 1, Scuppernong Corporation's Common Stock account had a balance of $300,000, representing 30,000 shares of $10 par value issued at par. On July 1, 6,000 shares were issued for $60,000 cash. On October 1, a 10% stock dividend was declared and distributed. On November 30, 15,000 shares were reacquired by the corporation at $12 per share. What is the balance in Common Stock appearing on the statement of stockholders' equity on December 31?

Question

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The initial balance was $300,000 for 30,000 shares. On July 1, 6,000 shares were issued, increasing the balance by $60,000 (6,000 shares x $10 par value). On October 1, a 10% stock dividend was declared, adding 3,600 shares (10% of 36,000 shares), increasing the balance by $36,000 (3,600 shares x $10 par value). The reacquisition of shares does not affect the Common Stock account. Thus, the balance is $396,000.

On January 1, Scuppernong Corporation's Common Stock Account Had a Balance