Question

Irish Corporation issued (sold) 10,000 shares of its no-par common stock for $70 per share. The bylaws established a stated value of $10 per share. The transaction would increase the common stock account on the balance sheet by how much?

A. $0.
B. $600,000.
C. $100,000.
D. $700,000.

Answer 1

C) $100,000

Step-by-step explanation:

Answer 2

Increase in the common stock account = $100,000

Step-by-step explanation:

Increase in the common stock account = Number of shares*stated value per share

Since the bylaws established a stated value of $10 per share, and the total number of shares issued is 10,000

Increase in the common stock account = 10,000*$10

Increase in the common stock account = $100,000

Therefore the transaction would increase the common stock account on the balance sheet by $100,000.