Question

Issued 2,700 shares of $0.01 par value common stock to investors for cash at $27 per share.

a) $72,900
b) $72,000
c) $54,000
d) $73,500

Answer 1

To determine the total cash received from issuing 2,700 shares of common stock at $27 per share, multiply the number of shares by the issue price. The correct answer is $72,900.

Step-by-step explanation:

The student's question is about issuing shares of common stock and calculating the total amount of cash received from the transaction. The company issued 2,700 shares of common stock with a par value of $0.01 at a price of $27 per share. To determine the total cash received from this stock issuance, you would multiply the number of shares by the issue price per share:

2,700 shares × $27 per share = $72,900.

Therefore, the correct answer to the student's question is $72,900, which is option a).