Question

Sale of 5,000 shares of common stock for $35 per share. Articles of incorporation authorized 40,000 shares of $20 par common stock. A check is received for the proceeds of this sale. Remember to track the number of shares of outstanding stock.

Answer 1

I don’t know what u askin but

The sale of 5,000 shares of common stock for $35 per share generates a total of $175,000 (5,000 shares * $35 per share). The par value of the common stock is $20 per share, so the total par value is $100,000 (5,000 shares * $20 per share). The remaining amount, which is the excess over par, is $75,000 ($175,000 - $100,000).

Now, the number of outstanding shares increases by 5,000, reaching a total of 5,000 shares. The check received for $175,000 represents the proceeds from the sale of these shares.