Answer:
The amount of paid-in capital $
Common stocks (22,000 x $2) 44,000
Preferred stocks (1,800 x $120) 216,000
Amount of paid-in capital 260,000
The correct answer is C
Explanation:
The amount of paid-in capital is the total of paid-in capital of common stocks and paid-in capital of preferred stocks. The paid-in capital of each stock is computed as number of stock multiplied by par value of each stock.
Answer:
D. Trojan Horse, nice to know some computer lab info of mine didn't go to waste
Explanation:
Answer:
d. Cash will be debited for $210,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $210,000
To common stock (5,000 shares × $5) = $25,000
To Paid-in Capital in Excess of Par Value $185,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
