ABC Company has the following authorized stock: Common stock: 1.00 par value, 100,000 shares On 1/11/15, ABC Company issued 10,000 shares of common stock for $5 per share (cash). How much cash does the company receive

The authorized share capital is the total maximum amount of shares in units that a company can raised as contained in its memorandum of association.

The issued share capital is the proportion of the authorized share capital that a company has decided to offer to investors to raise capital.

The total amount of issued share capital raised would be equal to

Issued share capital = units issued × price per units

= 10,000 × $5 = $50,000

Amount of cash received = $50,000

abiolataiwo2015 abiolataiwo2015 · Answer 2 · 2021-11-25T14:49:51+01:00

abiolataiwo2015 abiolataiwo2015

25-11-2021

Based on the information given the amount that the company received is $50,000.

Using this formula

Cash received=Shares of common stock× Per share

Where:

Shares of common stock=10,000 shares

Per share=$5 per share

Let plug in the formula

Cash received=10,000×$5

Cash received=$50,000

Inconclusion the amount that the company received is $50,000.

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