Irish Corporation issued (sold) 15,000 shares of its no ­par common stock for $65 per share

Solutions:-

Step:- 1

No Par Common Stock:- No Par Common Stock refers to the stocks which are issued without a par or face value in an Open market and open market determine the value of the stock. It means investors in the open market determines the price of the stock, not the company.

Bylaws:- Bylaws are the rules which are established by the BOD(Board of Directors) when company comes into existance.

Step:-2

Answer:- The transaction would increase the common stock account on the balance sheet by $75,000. So, Correct answer is Option 1st ($75,000).

Working Note:-

Irish Corporation issued (sold) 15,000 shares

The bylaws established a stated value of $5 per share.

So, The transaction would increase the common stock = 15000 share * $ 5 per share = $ 75,000.

Hence, The transaction would increase the common stock account on the balance sheet by $75,000.