The Danice Corporation was incorporated on January 1, 2005, with the following authorized capitalization: 40,000 shares of common stock, no par value, stated value $40 per share 10,000 shares of 5 percent cumulative preferred stock, par value $10 per share During 2005, Danice issued 24,000 shares of common stock for a total of $1,200,000 and 6,000 shares of preferred stock at $16 per share. In addition, on December 20, 2005, subscriptions for 2,000 shares of preferred stock were taken at a purchase price of $17. These subscribed shares were paid for on January 2, 2006. What should Danice report as total contributed capital on its December 31, 2005, balance sheet?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Danice Corporation was incorporated on January 1, 2005, with the following authorized capitalization:

40,000 shares of common stock, no par value, stated value $40 per share

10,000 shares of 5 percent cumulative preferred stock, par value $10 per share

During 2005, Danice issued 24,000 shares of common stock for a total of $1,200,000 and 6,000 shares of preferred stock at $16 per share. In addition, on December 20, 2005, subscriptions for 2,000 shares of preferred stock were taken at a purchase price of $17. These subscribed shares were paid for on January 2, 2006. What should Danice report as total contributed capital on its December 31, 2005, balance sheet?

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