Par value : It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock. Common stock : These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend. To determine: Representation of par value of stock.

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Chapter 18, Problem 1CMA

To determine

Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

To determine: Representation of par value of stock.

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