High School

Cheyenne Corporation began business in 2020 by issuing 37000 shares of $5 par common stock for $9 per share and 3700 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2020 balance sheet, Cheyenne would report

Answer :

Cheyenne Corporation would report the common stock at its par value of $5 per share on its December 31, 2020 balance sheet.

The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes various categories such as assets, liabilities, and equity. In the case of Cheyenne Corporation, the common stock issued at the beginning of the year was 37,000 shares with a par value of $5 per share. The par value represents the nominal value assigned to each share of stock. Despite the market value of the common stock being $10 per share, the balance sheet typically reports the common stock at its par value.

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