A Corporation began business by issuing 300,000 shares of $5 par value common stock for $24 per share

Finance May 22, 2021

A Corporation began business by issuing 300,000 shares of $5 par value common stock for $24 per share. During its first year, the corporation sustained a net loss of $30,000. The year-end balance sheet would show

Select one:

A) Common stock of $7,200,000.

B) Common stock of $1,500,000.

C) Total paid-in capital of $7,170,000

D) Total paid-in capital of $5,700,000

Expert Solution

Common stock = Number of shares * Par value

= 300,000 *$5

= $1,500,000

Hence, the correct option is B) Common stock of $1,500,000.

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