Question

RKJ Company has provided the following information: 100,000 shares of $5 par value common stock are authorized 64,000 shares have been issued 59,000 shares are outstanding The 64,000 shares of issued common stock were issued for $10 per share. Which of the following statements is correct?

a. Common stock is reported at $630,000 on the balance sheet.
b. Additional paid-in capital is reported at $260,000 on the balance sheet.
c. Common stock is reported at $350,000 on the balance sheet.
d. Treasury stock is reported at $45,000 on the balance sheet.

Answer 1

Answer:

$320,000

Explanation:

The computation is shown below:

= Issued shares of the common stock × par value per share

= 64,000 shares × $5

= $320,000

This $320,000 should be reported in the equity section of the balance sheet

Hence, this is the answer but the same is not provided in the given options

hence, the same is to be considered and relevant