Homework SourseTable 31 Jones Company Financial Information December 2007 D
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
Solution
Correct option is > B $1000
Increase in common stock + Increase in Paid up capital = $500 + $500 = $1000
