)beewell's net income for the year ended december 31, year 2 was $197,000. information from beewell's comparative balance sheets is given below. compute the cash received from the sale of its common stock during year 2.

at december 31 year 2 year 1
common stock, $5 par value $ 512,000 $ 460,800
paid-in capital in excess of par 960,000 863,800
retained earnings 700,000 592,800

a) $ 96,200

b) $51,200

c) $147,400

d) $197,000

e) $107,200

C) $147,400

Explanation:

Year 2       Year 1  

$512,000$460,800Common Stock

$960,000$863,800Paid-in capital in excess of par

$700,000$592,800Retained earnings

When the company issue new shares the values are recorded in the Common Stock accounts and in the Paid-in Capital in excess of par, the increase on this accounts indicates the value of sales:

$512,000$460,800 = $51,200Common Stock

$960,000$863,800 = $96,200 Paid-in capital in excess of par

$51,200 + $96,200 = $147,400

answer; automated fingerprint;

after cutting wages and benefits in order to increase profit .

apex~