Question

ABC Company was organized on January 1, 2021. The firm was authorized to issue 150,000 shares of $8 par value common stock. During 2021, ABC Company had the following transactions relating to stockholders' equity: Issued 45,000 shares of common stock at $10 per share. Issued 30,000 shares of common stock at $11 per share. Reported a net income of $150,000. Paid dividends of $75,000. What is total paid-in capital at the end of 2021

Answer 1

Answer: $780,000

Explanation:

The Paid-In Capital refers to the amount of Equity in the company which can also be said to be the amount of money raised from share sales;

= (45,000 * 10) + (30,000 * 11)

= $780,000