The Following Balances Have Been Excerpted from Edwards' Balance Sheets

question 34

Multiple Choice

The following balances have been excerpted from Edwards' balance sheets: Edwards Company paid or collected during 2013 the following items:
The salary expense on the income statement for 2013 was

• A) $366,500.
• B) $472,500.
• C) $489,500.
• D) $595,500.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters.

Shares Issued

Refers to the total number of shares that a company has allocated to shareholders as part of its capital structure, including those owned by the public and the company itself.

Par Common Stock

The nominal or face value of a share of common stock, as stated in the corporate charter, which has minimal effect on its market value.