Question

The following information is available for Mint Corporation:

Common Stock ($10 par) $1,500,000
Paid-in Capital in Excess of Par—Preferred 200,000
Paid-in Capital in Excess of Stated Value—Common 750,000
Preferred Stock 450,000
Retained Earnings 800,000
Treasury Stock—Common 50,000

Based on the preceding information, answer the following questions.

a. Total paid-in capital.
b. Total stockholders' equity

Answer 1

A. Total paid-in capital $2,900,000

B. Total stockholders' equity $3,650,000

Step-by-step explanation:

A. Calculation to determine the Total paid-in capital

Total paid-in capital = ($1,500,000 + $200,000 + $750,000 + $450,000)

Total paid-in capital = $2,900,000

Therefore Total paid-in capital will be $2,900,000

B. Calculation to determine the Total stockholders' equity

Total stockholders' equity = ($2,900,000 + $800,000 – $50,000

Total stockholders' equity = $3,650,000

Therefore Total stockholders' equity will be $3,650,000