Question

Bagwell's net income for the year ended December 31, Year 2 was $190,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2. At December 31 Common Stock, $5 par value Paid-in capital in excess of par Retained earnings Year 2 Year 1 $505,000 $454,500 953,000 857,500 693,000 586,500 Multiple Choice $190,000 O O $105,500 O O $50.500 $95.500 O

Answer 1

Answer The Correct answer is $146,000 Explanations Calculation of cash received from the sale of its common stock during Year 2 Increase in Common Stock ($505,000 - $454,500) $50,500 Increase in Excess Paid-in Capital ($953,000 - $857,500) $95,500 Cash received from the sale of its common stock $146,000