Rock City Company began business on January 1,2012.The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value,3% cumulative preferred stock.What is the maximum amount that can be reported on the balance sheet for Common Stock and Preferred Stock,respectively,if all of the stock is issued? Common Stock Preferred Stock

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The maximum amount reported for Common Stock is 500 shares x $1 par value = $500. For Preferred Stock, it's 400 shares x $4 par value = $1,600.

Rock City Company Began Business on January 1,2012