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30 January, 00:52

Chegg "Thurman Corporation issued 500,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $2.5 per share. During the first year of operations, the company earned $180,000 and declared a dividend of $45,000. At the end of this first year of operations, the balance of the Common Stock account is:"

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  1. 30 January, 04:52
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    The balance of the Common Stock account i at the end of the first year of operations is $ $1,385,000

    Explanation:

    Solution

    Given that:

    The common stock that was issued is = 500,000 shares * $ 2.5 shares = $1250000

    Thus,

    The company gained or earned = $180,000

    The less Dividend paid is = $45,000

    The end balance stock of the Corporation is given as:

    The issued stock + The company gain - The divvied paid (Less)

    =$1250000 + $180,000 - $45,000

    = $1430000 - $45,000

    = $1,385,000
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