Willis Corporation issued 500,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $2.50 per share. During the first year of operations, the company earned $180,000 and declared a dividend of $45,000. At the end of this first year of operations, the balance of the Common Stock account will equal: Group of answer choices $1,385,000. $1,250, 000. $250,000. $1,272,500.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 10MC: A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the...
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Willis Corporation issued 500,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of
$2.50 per share. During the first year of operations, the company earned $180,000 and declared a dividend of $45,000.
At the end of this first year of operations, the balance of the Common Stock account will equal: Group of answer choices
$1,385,000. $1,250,000. $250,000. $1,272,500.
Transcribed Image Text:Willis Corporation issued 500,000 shares of $0.50 par value capital stock at its date of incorporation for cash at a price of $2.50 per share. During the first year of operations, the company earned $180,000 and declared a dividend of $45,000. At the end of this first year of operations, the balance of the Common Stock account will equal: Group of answer choices $1,385,000. $1,250,000. $250,000. $1,272,500.
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