Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 160,000 shares of $10 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders' equity: Issued 48,000 shares of common stock at $12 per share. Issued 32,000 shares of common stock at $13 per share. Reported a net income of $160,000. Paid dividends of $80,000. What is total paid-in capital at the end of 2021

Question

Jada Savage

Business

16 May, 18:57

Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 160,000 shares of $10 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders' equity: Issued 48,000 shares of common stock at $12 per share. Issued 32,000 shares of common stock at $13 per share. Reported a net income of $160,000. Paid dividends of $80,000. What is total paid-in capital at the end of 2021

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Coleman Hawkins · Answer 1

Total paid-in capital=$992,000

Explanation:

Calculation for total paid-in capital at the end of 2021

First step

Issued 48,000 shares of common stock at $12 per share.

(48,000 shares * $12 per share)

=$576,000

Issued 32,000 shares of common stock at $13 per share

(32,000 shares*$13 per share)

$416,000

Second Step

$576,000+$416,000

Total paid-in capital=$992,000

Therefore for total paid-in capital at the end of 2021 would be $992,000