A is corrent. The balances in the common stock and preferred stock accounts equal the total par or stated value of the shares issued. Therefore, when the account balance is divided by the par or stated value per share, the result is the number of shares issued.
Preferred stock ($225,000 ÷ $15), 17,000 shares issued
Common stock ($300,000 ÷ $ 5), 60,000 shares issued
B is incorrect. The balances in the common stock and preferred stock accounts equal the total par or stated value of the shares issued. Therefore, when the account balance is divided by the par or stated value per share, the result is the number of shares issued.
Preferred stock ($225,000 ÷ $15), 17,000 shares issued
Common stock ($300,000 ÷ $ 5), 60,000 shares issued
C is incorrect. The balances in the common stock and preferred stock accounts equal the total par or stated value of the shares issued. Therefore, when the account balance is divided by the par or stated value per share, the result is the number of shares issued.
Preferred stock ($225,000 ÷ $15), 17,000 shares issued
Common stock ($300,000 ÷ $ 5), 60,000 shares issued
D is incorrect. The balances in the common stock and preferred stock accounts equal the total par or stated value of the shares issued. Therefore, when the account balance is divided by the par or stated value per share, the result is the number of shares issued.
Preferred stock ($225,000 ÷ $15), 17,000 shares issued
Common stock ($300,000 ÷ $ 5), 60,000 shares issued
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