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3 April, 05:44

Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 98,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity: Issued 24,000 shares of common stock at $5.20 per share. Issued 30,000 shares of common stock at $8.50 per share. Reported a net income of $100,000. Paid dividends of $45,000. What is total Paid-in capital at the end of 2018?

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  1. 3 April, 05:52
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    The total Paid-in capital at the end of 2018 is $384,600

    Explanation:

    The computation of total paid in capital is shown below:

    Par value of First issue common stock = 24,000 * $5.20 = $124,800

    Par value of Second issue common stock = 30,000 * $5 = $150,000

    Add: Excess of paid in capital

    First issue of common stock = 24,000 * ($5.20 - $5) = $4,800

    Second issue of common stock = 30,000 * ($8.50 - $5) = $105,000

    So, the total paid in capital = $124,800 + $150,000 + $4,800 + $105,000

    = $384,600

    Thus, The total Paid-in capital at the end of 2018 is $384,600
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