Question

A company issued 115 shares of $100 par value common stock for $12,500 cash. the total amount of paid-in capital is:

Answer 1

A company issued 115 shares of $100 par value

Common stock value = $12,500

Total amount of paid-in capital = ?

Multiply the shares with amount par value =

Amount of shares = 115 x 100 = $11,500

Total amount of paid-in capital = common stock value - total amount of shares = $12,500 - $11,500

= $1000

So, total amount paid in capital is $1000.