Explanation Paid-in capital refers to total amount paid by the investors on common stock and preferred stock issued to them. Total paid in capital represents the total amount invested by the shareholders, which includes the par value of the stock issued plus any additional paid in capital in excess of par. Excess amount raised from the stock issuance above the par value represents paid-in capital in excess of par. It is given that the common stock par value is $313,000, paid-in capital in excess of par-common stock is $240,000, and preferred stock value is $85,000. Now, calculate the total paid-in capital for Incorporation S as follows: Particulars Amount Common stocks par vale $313,000

Financial Accounting (12th Edition) (What's New in Accounting)

12th Edition

ISBN: 9780134725987

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

See similar textbooks

Concept explainers

Cost of Debt, Cost of Preferred Stock

This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the l…

Cost of Common Stock

Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity

Videos

Question

Chapter 10, Problem 10.62Q

To determine

The total paid-in capital for Incorporation S.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 10, Problem 10.61Q

Chapter 10, Problem 10.63Q

Students have asked these similar questions

The Bruce Corporation uses a job-order costing system

None

Harper Enterprises is the sole owner and operator of Harper's Company. As of the end of its accounting period, December 31, 2013, Harper's Company has assets of $1,200,000 and liabilities of $450,000. During 2014, Harper invested an additional $90,000 and withdrew $50,000 from the business. What is the amount of net income during 2014, assuming that as of December 31, 2014, assets were $1,350,000 and liabilities were $400,000?

Chapter 10 Solutions

Financial Accounting (12th Edition) (What's New in Accounting)

Ch. 10 - The two main categories of stockholders equity are...Ch. 10 - Prob. 2QC Ch. 10 - Stockholders of a corporation directly elect the...Ch. 10 - The par value of a share of common stock a. is...Ch. 10 - Prob. 5QC Ch. 10 - If a corporation issues 1,000 shares of 1 par...Ch. 10 - Prob. 7QC Ch. 10 - Sandusky Corporation purchased 3,000 shares of its...Ch. 10 - Graves Corporation issued 50,000 shares of 1 par...Ch. 10 - Prob. 10QC

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

The total paid-in capital for Incorporation S.

Solution Summary: The author explains the total paid-in capital for Incorporation S, which includes the par value of the stock issued plus any additional paid in capital in excess of par.

Concept explainers

Videos

The total paid-in capital for Incorporation S.

Want to see the full answer?

Chapter 10 Solutions