Question

The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock, $10 par value $ 120,000 $ 110,000 Paid-in capital in excess of par 577,000 347,000 Retained earnings 323,500 297,500 The company’s net income for the year ended December 31, 2017, was $53,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017.

Answer 1

Answer:

cash 240,000 debit

common stock 10,000 credit

additional paid-in 230,000 credit

Explanation:

Common stock 2017 - Common stock 2016 = Δ2017

additional paid-in 2017 - additional paid-in 2016 = Δ2017

120,000 - 110,000 = 10,000

577,000 - 347,000 = 230,000

Total increase 240,000