Question

The following information is from the December​ 31, 2017 balance sheet of Tudor Corporation.Preferred​ Stock, $100 par $370,000​Paid-In Capital in Excess of Par​ - Preferred 31,000Common​ Stock, $1 par 122,000​Paid-In Capital in Excess of Par​ - Common 386,000Retained Earnings 82,900Total​ Stockholders' Equity $991,900What was the total​ paid-in capital as of December​ 31, 2017?A.$909,000B.$878,000C.$991,900D.$ 756,000

Answer 1

A. $909,000

Explanation:

To compute Tudor Corporation’s paid in capital as of December 31, 2017, we must get first the Total Shareholders’ Equity ($991,900) minus Retained earnings as of December 31, 2017 ($82,900) plus treasury shares or any shares reacquired by the company if there is, equals $909,000

or

($991,900 - $82,900 + 0 = $909,000)