Answer:
The balance of Common Stock for Grayson Company is $8,300
Explanation:
For computing the common stock value, first we have to compute the ending retained earning balance which is shown below
= Beginning retained earning balance + revenues - expenses
= $3,300 + $10,100 - $7,550
= $5,850
Thus, the ending balance is $5,850
Now by applying the accounting equation we can compute the common stock value
Accounting equation is equals to
Assets = Liabilities + Equity
where,
Assets = Cash + Accounts receivable + Land
= $5,000 + $2,100 + $8,600
= $15,700
Liabilities = Accounts payable = $1,550
And, Equity = Ending Retained earnings balance + common stock
= $5,850 + common stock
Now, apply the above accounting equation which is shown below:
$15,700 = $1,550 + $5,850 + common stock
$15,700 = $7,400 + common stock
So, common stock = $8,300
Hence, the balance of Common Stock for Grayson Company is $8,300
