Answered

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Sheridan Corporation began business by issuing 179300 shares of $5 par value common stock for $20 per share. During its first year, the corporation sustained a net loss of $29400. The year-end balance sheet would show
Total paid-in capital of $925900.
Common stock of $896500.
Common stock of $3586000.
Total paid-in capital of $3556600.

Sagot :

ayune

Sheridan Co. began business by issuing 179300 shares of $5 par value common stock for $20 per share. The year-end balance sheet would show common stock of $3586000

Paid-in capital is the total amount of cash or other assets contributed to a corporation by shareholders in exchange for stock at par value, plus any amount paid in excess.

Par value of a common stock is the value set by the corporation stakeholders. It is not related to the market price of the stock.

Common stocks are the total values of shares owned by the company.

In the given problem, the number of shares issued by the company is  179300 and the market price is $20, hence,

common stocks = 179300 x $20 = $3586000 and it should be reported in the year-end balance sheet.

Therefore, the correct option is: Common stock of $3586000.

Learn more about common stocks here:

https://brainly.com/question/14300660

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