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Table 3-1 Jones Company Financial Information December 2007. December 2008 Net i

ID: 2827288 • Letter: T

Question

Table 3-1 Jones Company Financial Information December 2007. December 2008 Net income. $2000. $5000 Accounts receivable. 750. 750 Accumulated depreciation. 1000. 1500 Common stock. 4500. 5000 Paid-in capital. 7500. 8000 Retained earnings. 1500. 2500 Accounts Payable. 750. 750
Based on the information, assuming that no common stock was purchased during the year, the firm issued how much new common stock during 2008 A $1500 B $1000 C $2000 D $500
Table 3-1 Jones Company Financial Information December 2007. December 2008 Net income. $2000. $5000 Accounts receivable. 750. 750 Accumulated depreciation. 1000. 1500 Common stock. 4500. 5000 Paid-in capital. 7500. 8000 Retained earnings. 1500. 2500 Accounts Payable. 750. 750
Based on the information, assuming that no common stock was purchased during the year, the firm issued how much new common stock during 2008 A $1500 B $1000 C $2000 D $500

Explanation / Answer

Correct option is > B $1000

Increase in common stock + Increase in Paid up capital = $500 + $500 = $1000