If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed surplus" for financial statement purposes?
A)$10,000
B)$50,000
C)$150,000
D)$200,000

Question

Quizplus · Accepted Answer

Contributed surplus is calculated as the excess amount received over the par value. Here, the shares are issued at $20, which is $5 above the par value of $15. Therefore, the contributed surplus is 10,000 shares * $5 = $50,000.

If 10,000 Shares with Par Value of $15/share Are Issued