RKJ Company has provided the following:
100,000 shares of $5 par value common stock are authorized;
70,000 shares were issued for $9 per share;
65,000 shares are outstanding.
Which of the following statements is correct based only on the above facts?
A)Common stock is reported at $630,000 on the balance sheet.
B)Additional-paid in capital is reported at $260,000 on the balance sheet.
C)Common stock is reported at $350,000 on the balance sheet.
D)Treasury stock is reported at $45,000 on the balance sheet.

Question

RKJ Company has provided the following:
100,000 shares of $5 par value common stock are authorized;
70,000 shares were issued for $9 per share;
 65,000 shares are outstanding.
Which of the following statements is correct based only on the above facts?
A)Common stock is reported at $630,000 on the balance sheet.
B)Additional-paid in capital is reported at $260,000 on the balance sheet.
C)Common stock is reported at $350,000 on the balance sheet.
D)Treasury stock is reported at $45,000 on the balance sheet.

Quizplus · Accepted Answer

Common stock ($350,000) = Issued shares (70,000) * Par value ($5)

RKJ Company Has Provided the Following