Superior has provided the following information for its recent year of operation:
The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
How much did Superior sell its common stock for during the year?
A)$5,000.
B)$2,500.
C)$7,500.
D)$25,000.

Question

Superior has provided the following information for its recent year of operation:
 The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
The additional paid-in capital account balance increased $2,500 during the year.
 The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
Net income was $26,000.
How much did Superior sell its common stock for during the year?
A)$5,000.
B)$2,500.
C)$7,500.
D)$25,000.

Quizplus · Accepted Answer

The increase in the common stock account ($5,000) plus the increase in additional paid-in capital ($2,500) equals the selling price of the common stock ($7,500).

Superior Has Provided the Following Information for Its Recent Year