Tomlinson Packaging Corporation began business in 201X by issuing 20,000 shares
ID: 2485079 • Letter: T
Question
Tomlinson Packaging Corporation began business in 201X by issuing 20,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 201X balance sheet, Tomlinson Packaging would report
Question 8 options:
Common Stock of $100,000
Paid-In Capital of $150,000
Common Stock of $200,000
Common Stock of $160,000
Common Stock of $100,000
Paid-In Capital of $150,000
Common Stock of $200,000
Common Stock of $160,000
Explanation / Answer
Hence the answer is Common Stock of $100,000
Common Stock = 100,000 (20000*5) Paid in Capital ( 8-5) = 60,000 (20000*3)