The following account balances were drawn from the 2013 financial statements of Gunn Company Based on the above information, what is the balance of Common Stock for Gunn Company?
A) $9,950
B) $7,700
C) $450
D) $10,400

Question

The following account balances were drawn from the 2013 financial statements of Gunn Company  Based on the above information, what is the balance of Common Stock for Gunn Company?
A) $9,950 
B) $7,700 
C) $450 
D) $10,400

Quizplus · Accepted Answer

Assets ($4,400 + $1,500 + $8,000) = Liabilities ($1,250) + Equity; Equity = $12,650; $12,650 = Common Stock + Retained Earnings ($2,700 + $9,500 - $7,250); $12,650 = Common Stock + $4,950; Common Stock = $7,700

The Following Account Balances Were Drawn from the 2013 Financial