Answer:
a. $370,000.
Explanation:
The first would be to define additional paid-in that would be the amount paid over face value if the face value is 100 and the share at issued at 105 then there is a 5$ additional paid-in per share.
With that in noticed we are going to <u>check the transaction during 2018:</u>
- 30,000 at $7 ($5 face value $2 additional paid in)
- 20,000 at $8 ($5 face value $3 additional paid in)
Common stock
we got 50,000 issued with their face of $5 = 250,000
additional paid-in capital would be
30,000 shares at $2 = $60,000
and 20,000 shares at $3 = $60,000
additional paid-in $120,000
The total paid-in would be
250,000 common stock
+ 120,000 additional paid-in
Equal to 370,000
