37. Jansen Packaging Corporation began business in 2015 by issuing 40,000 shares

Question

37. Jansen Packaging Corporation began business in 2015 by issuing 40,000 shares of $5 par par. At common stock for $8 per share and 10,000 shares of 6%, $10 par preferred stock for year end, the common stock had a market value of $10. On its December 31, 2015 balance sheet, Jansen Packaging would report A) Common Stock of $400,000. B) Common Stock of $200,000. C) D) Common Stock of $320,000. Paid-In Capital of $300,000 Ise the following to answer questions 38-39: he Ice Corporation issues 30,000 shares of $50 par value preferred stock for cash at $60 per share.

Explanation / Answer

The Answer is "B"

B. Commom Stock of $200000.

Stockholder's Equity :-

Particulars Amount ($) Amount ($) 6% Preferred Stock(10000*$10) 100000 Common Stock(40000*$5) 200000 Total Capital Stock 300000 Additional Paid - in capital Paid in Capital in Excess of Par, Common Stock (40000*($8-$5)) 120000 Total Additional Paid - in Capital 120000 Total Paid in Capital 420000

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