Question

ABC company issued 3000 shares of stock for $5 per share and issued 5000 shares for land valued at $10,000. How much cash did ABC company receive from the issuing of stock.?

Answer 1

Answer:

The cash received by ABC company from the issuing of stock is $15,000.

Explanation:

It is given that ABC company issued 3000 shares of stock for $5 per share.

The cash received by ABC company from the issuing 3000 shares of stock is

$Cash=3000\times \ 5$

$Cash=\ 15,000$

It is also given that ABC company issued 5000 shares for land valued at $10,000. It means ABC company received land instead of cash. So, total cash received by ABC company from the issuing of stock is $15000

Therefore, the cash received by ABC company from the issuing of stock is $15,000.