The following selected information is from Princeton Company's comparative balance sheets. At December 31..................... _2015..................... 2014 Common

Question:

The following selected information is from Princeton Company's comparative balance sheets.

At December 31..................... _2015..................... 2014

Common stock, $10 par value . . . . . . . . . $105,000 ........ $100,000

Paid-in capital in excess of par . . . . . . . . . . 567,000 ........ 342,000

Retained earnings . . . . . . . . . . . . . . . . . . . . 313,500 ........ 287,500

The company's net income for the year ended December 31, 2015, was $48,000.

1. Compute the cash received from the sale of its common stock during 2015.

2. Compute the cash paid for dividends during 2015.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...