Question

Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000. The additional paid-in capital account balance increased $2,500 during the year. The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000. Net income was $26,000. How much did Superior sell its common stock for during the year?

Answer 1

$7500

Step-by-step explanation:

The cash generated by selling common stock can be calculated by the aggregating the increase in common stock value (Closing less Opening Value) and the increase in the paid in capital (Closing less Opening Value).

So

Selling of common stock = $5000 + $2500 = $7500