Thurman Corporation issued 450,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $4 per share.During the first year of operations,the company earned $100,000 and declared a dividend of $40,000.At the end of this first year of operations,the balance of the Common Stock account is:

Question

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The balance of the Common Stock account is calculated by multiplying the number of shares issued by the par value per share. Thus, 450,000 shares * $0.50 par value = $225,000. Earnings and dividends do not affect the Common Stock account balance.

Thurman Corporation Issued 450,000 Shares of $0