The beginning balance in the Common Stock account of Alpha Technologies Inc.was $80,000.The revenues and expenses amounted to $60,000 and $40,000,respectively.During the year,the company did not declare any dividends or issue common stock.The Common Stock account will have $100,000 at the end of the year.

Question

Quizplus · Accepted Answer

The Common Stock account remains unchanged at $80,000 because no new stock was issued. The changes in revenues and expenses affect the Retained Earnings, not the Common Stock account.

The Beginning Balance in the Common Stock Account of Alpha