Belton, Inc. had the following transactions in 2018, its first year of operations:• Issued 33,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $24.00per share.• Earned net income of $73,000.• Paid no dividends. At the end of 2018, what is the total amount of paid-in capital? A) $792,000 B) $33,000 C) $73,000 D) $865,000

Question

Jesse Lutz

Business

12 November, 00:05

Belton, Inc. had the following transactions in 2018, its first year of operations:• Issued 33,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $24.00per share.• Earned net income of $73,000.• Paid no dividends. At the end of 2018, what is the total amount of paid-in capital? A) $792,000 B) $33,000 C) $73,000 D) $865,000

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Mercedes Ryan · Answer 1

A) $792,000

Explanation:

33,000 shares of common stock

issued at:

market value 24 dollars

face vale 1 dollar

additional paid-in 23 per share

Equity:

Common Stock

33,000 shares x 1 = 33,000

Additional Paid-in capital

33,000 shares x 23 = 759,000

Total capital 792,000

The total paid-in capital will be the sum of both, the common stock and the paid-in capital in excess of par.