Table 13-1
the Following Selected List of Accounts with Their

question 141

Multiple Choice

Table 13-1
The following selected list of accounts with their normal balances was taken from the general ledger of Grant Corporation as of December 31, 2014:
$\begin{array}{|l|r|}\hline \text { Cash } & \$ 173,500 \\\hline \text { Common shares, } 100,000 \text { shares authorized, } 38,000 \text { shares issued } & 190,000 \\\hline \text { Retained earning } & 131,500 \\\hline \text { Cash dividends payable } & 25,000 \\\hline \text { Preferred shares, } 300,000 \text { shares authorized } 200,000 \text { shares issued } & 500,000 \\\hline\end{array}$
-Refer to Table 13-1.The average issue price of a preferred share was:

• A) $2.50
• B) $6.90
• C) $5.00
• D) $3.80

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Definitions:

Partners' Equity

The total amount of capital contributed by partners plus their accumulated profits retained in the business.

Capital Account Balances

The financial records that show the equity ownership and investment contributions of partners or shareholders in a business.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as shown in the financial statements.

Original Partners

The initial members who form a partnership by agreeing to share the responsibilities and profits of a business.