Business: The following information is from Princeton Company s comparative balance sheets. At December 31 Current year Priro year Common stock, $10 par value $124,000 118,000 Paid—in capital in excess of par 585,000 351,000 Retained earnings 331,500 305,500 The company s net income for the current year ended December 31 was $57,000. Required: Write down the T-accounts to calculate the cash received from the sale of its common stock during the current year.

The following information is from Princeton Company

spiritcampbell56

08.08.2021

cash received = $ 240,000

Explanation:

On calculating the common stock $10 par

Beg. balance - $ 118,000

$6,000 - Issuance of common stock

Thus the ending balance = $124,000

On calculating the paid in capital in excess of par

Beg. balance - $ 351,000

$ 234,000 - Issuance of common stock

Thus the end balance - $ 585,000

Therefore,

The cash received - $ 240,000

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