Question

The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares. During 2018, its first year of operations, Alpaca had the following transactions: January 1 sold 8 million shares at $15 per share June 3 retired 2 million shares at $18 per share December 28 sold 2 million shares at $20 per share What amount should Alpaca report as additional paid-in capital‒ excess of par, in its December 31, 2018, balance sheet?

Answer 1

Additional paid-in capital‒ excess of par=

8,000,000*(15-1)=112,000,000

-2,000,000*(18-1)=34,000,000

+2,000,000(20-1)=38,000,000

=184,000,000

Step-by-step explanation: