On January 1, Victory Corporation's Common Stock account had a balance of $100,000, representing 20,000 shares of $5 par value issued at $40 per share. On May 15, 5,000 shares were issued for $120,000 cash. On August 31, a 10% stock dividend was declared and distributed. What is the balance in Common Stock appearing on the statement of stockholders' equity on December 31?

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The initial balance is $100,000 for 20,000 shares. On May 15, 5,000 shares were issued, increasing the Common Stock by $25,000 (5,000 shares x $5 par value). The stock dividend on August 31 increases the shares by 2,500 (10% of 25,000 shares), adding $12,500 (2,500 shares x $5 par value) to Common Stock. The total balance is $137,500.

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