The following account balances were drawn from the financial statements of Grayson Company: Based on the above information, what is the balance of Common Stock for Grayson Company?

Question

The following account balances were drawn from the financial statements of Grayson Company:  Based on the above information, what is the balance of Common Stock for Grayson Company?

Quizplus · Accepted Answer

Assets ($8,800 + $3,000 + $16,000) = Liabilities ($2,500) + Equity; Equity = $25,300; $25,300 = Common Stock + Retained Earnings ($5,400 + $19,000 − $14,500); $25,300 = Common Stock + $9,900; Common Stock = $15,400

The Following Account Balances Were Drawn from the Financial Statements