Century Corporation issued 400,000 shares of $4 par value common stock at the time of its incorporation.The stock was issued for cash at a price of $16 per share.During the first year of operations,the company sustained a net loss of $100,000.The year-end balance sheet would show the balance of the Common Stock account to be:

Question

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The balance of the Common Stock account would be calculated as the number of shares issued multiplied by the par value per share. In this case, 400,000 shares * $4 par value = $1,600,000. The issue price or the net loss does not affect the Common Stock account balance.

Century Corporation Issued 400,000 Shares of $4 Par Value Common