Question

Q 11.19: Clayworks Corporation issued 300,000 shares of $5 par value common stock for $26 per share. During that year, the corporation sustained a net loss of $80,000. The year-end balance sheet would show

Answer 1

Answer:

The amount which the year end balance sheet will show Common stock of $1,500,000

Explanation:

As the corporation issued the 30,000 shares at the rate of $5 par value. So, the common stock is of:

= Number of shares × Price per share

where

Number of shares is 300,000

Price per share is $5

So, putting the values in the above:

= 300,000  × $5

= $1,500,000