May, Inc. had the following transactions in 2019, its first year of operations: Issued 22,000 shares of common stock. The stock has par value of $2.00 per share and was issued at $15.00 per share. Issued 1,800 shares of $120.00 par value preferred stock at par ... Earned net income of $38,000. Paid no dividends. At the end of 2019, what is the total amount of paid - in capital? OA. $546,000 O B. $584,000 O C. $260,000 OD, $330,000

Question

Maliyah

Business

15 October, 22:04

May, Inc. had the following transactions in 2019, its first year of operations: Issued 22,000 shares of common stock. The stock has par value of $2.00 per share and was issued at $15.00 per share. Issued 1,800 shares of $120.00 par value preferred stock at par ... Earned net income of $38,000. Paid no dividends. At the end of 2019, what is the total amount of paid - in capital? OA. $546,000 O B. $584,000 O C. $260,000 OD, $330,000

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Medina · Answer 1

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.