The beginning balance in the Common Stock account of Woodlands Technologies, Inc. was $80,000. The revenues and expenses amounted to $55,000 and $41,000, respectively. During the year, the company did not declare any dividends or issue common stock. The Common Stock account will have $135,000 at the end of the year.

Question

Quizplus · Accepted Answer

The Common Stock account reflects the amount of equity a company has from issuing shares and does not change with the company's revenues and expenses. The revenues and expenses would affect the Retained Earnings account, not the Common Stock account.

The Beginning Balance in the Common Stock Account of Woodlands