Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
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How much did Superior sell its common stock for during the year?
A)$5,000.
B)$2,500.
C)$7,500.
D)$27,500.

Question

Quizplus · Accepted Answer

The common stock account increased by $5,000 ($25,000 ending balance – $20,000 beginning balance). In addition, the additional paid-in capital account increased by $2,500. Therefore, the total amount received from the sale of common stock is $7,500 ($5,000 + $2,500).

Superior Has Provided the Following Information for Its Recent Year