Wendell Company provided the following pertaining to its accounting year that ended December 31,2019: • Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared,of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution,which had a $5,000 par value and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the journal entry to record the sale,Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price
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What is the amount of increase in Wendell's common stock account during the year 2019?
A)$15,000.
B)$13,000.
C)$24,000.
D)$17,000.

Question

Quizplus · Accepted Answer

The increase in Wendell's common stock account during the year 2019 is $15,000. This is calculated by adding the par value of the common stock sold ($10,000) and the par value of the common stock distributed as a stock dividend ($5,000). The resale of treasury stock and the cash dividends do not affect the common stock account.

Wendell Company Provided the Following Pertaining to Its Accounting Year