Final answer:
The dollar amount for common stock on a company's balance sheet reflects the number of shares issued, multiplied by their par value.
Step-by-step explanation:
The dollar amount reported as common stock on the balance sheet of a corporation that has common stock with a par value is the number of shares issued, multiplied by the par value per share. This represents the initial amount of money that the corporation received from shareholders when the shares were first issued, excluding any additional paid-in capital from issuing shares above their par value. When firms issue stock, there are generally two forms of returns that investors expect: dividends and capital gains. A dividend is a direct payment to shareholders, and a capital gain is the increase in the value of the stock when it is sold for a higher price than it was purchased.