Answer:
$6,700,000
Explanation:
Preparation of the paid-in capital section of the balance sheet at December 31, 2020.
Paid-in capital section of the balance sheet at December 31, 2020
7% Preferred stock, $100 par value, cumulative15,000 shares issued and outstanding $1,500,000
Add Common stock, no par, $10 stated value, 500,000 shares authorized, 350,000 shares issued andoutstanding 3,500,000
Total capital stock5,000,000
($1,500,000+3,500,000)
Add Additional paid-in capitalIn excess of par—preferred stock$ 300,000
(15,000 shares × $20 )
Add In excess of stated value—common stock1,400,000
(350,000 shares × $4)
Total paid-in capital$6,700,000
Therefore the paid-in capital section of the balance sheet at December 31, 2020 is $6,700,000
