What would be recorded in the common stock par value account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?
A) $20,000
B) $40,000
C) $30,000
D) $60,000

Question

Quizplus · Accepted Answer

The common stock par value account on the balance sheet would record $40,000, calculated as 20,000 shares multiplied by the par value of $2 per share.

What Would Be Recorded in the Common Stock Par Value