Asked by
Fiere Brown
on Oct 27, 2024
Verified
Irish Corporation issued (sold) 10,000 shares of common stock for $70 per share.The bylaws established a stated value of $10 per share.What is the amount of increase in the common stock account as a result of this transaction?
A) $0.
B) $600,000.
C) $100,000.
D) $700,000.
Common Stock Account
An equity account that represents the ownership interests of common shareholders in a company.
Stated Value
A value assigned to a company's no-par value stock by the company’s board of directors.
Shares
Shares represent an ownership stake in a company or financial asset, distributing profits equally through dividends if any are declared.
- Apprehend the influence of common equity transactions on fiscal statements.
- Acquire knowledge on the primary accounting practices for the issuance and repurchase of a company's own shares.
Verified Answer
AV
Learning Objectives
- Apprehend the influence of common equity transactions on fiscal statements.
- Acquire knowledge on the primary accounting practices for the issuance and repurchase of a company's own shares.
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