Question

On September 1, Apstein Company has 300,000 shares of $9 par value common stock that are issued and outstanding. If the balance sheet on that date shows the following account balances relating to the common stock, what is the total common stock amount on the balance sheet?

A) $2,700,000
B) $900,000
C) $3,000,000
D) $270,000

Answer 1

The total common stock amount on the balance sheet for Apstein Company with 300,000 shares issued at a $9 par value is $2,700,000.

Step-by-step explanation:

The total common stock amount on the balance sheet for Apstein Company would be the number of shares issued multiplied by the par value per share. With 300,000 shares issued and a par value of $9, the calculation is as follows: 300,000 shares × $9 per share = $2,700,000. Therefore, the correct answer is A) $2,700,000. This amount represents the common stock value that will appear on the balance sheet and is a reflection of the equity contributed by shareholders at the stipulated par value.