Answer:
Common stock balance= $1,039,000
Explanation:
A balance sheet can be described as a financial statement that presents the assets, liabilities and shareholders' equity of a company.
Common stock refers to the security such shares that represents ownership in a company.
In order to determine the common stock account balance for Rogers Corp., its balance sheet is first prepared as follows:
Rogers Corp.
Balance Sheet
For the year 2018
<u>Particulars $ $ </u>
Intangible Assets:
Patents and copyrights 720,000
Tangible Assets:
Net fixed assets 3,400,000
Current Assets:
Cash 250,000
Accounts receivable 129,000
Inventory <u> 345,000 </u>
Total Current Assets 724,000
Current Liabilities:
Accounts payable (530,000)
Notes payable <u> (190,000) </u>
Working Capital 4,000
Long-term Liabilities:
Long-term debt <u> (1,830,000) </u>
Net Total Assets <u> 2,294,000 </u>
Financed by:
Common stock (w.1) 1,039,000
Accumulated retained earnings <u> 1,255,000 </u>
Owners' Equity <u> 2,294,000 </u>
Workings:
w.1: Common stock balance = Net total assets - Accumulated retained earnings = $2,294,000 - $1,255,000 = $1,039,000
