Question

Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2018? Group of answer choices $420,000. $320,000. $370,000. $470,000.

Answer 1

$370,000

Step-by-step explanation:

Calculation to determine total paid-in capital at the end of 2018

Using this formula

2018 Ending total paid-in capital =(Shares of Common stock*per Shares)+ (Shares of common stock*per Shares)

Let plug in the formula

2018 Ending total paid-in capital=(30,000 × $7) + (20,000 × $8)

2018 Ending total paid-in capital=$210,000+$160,000

2018 Ending total paid-in capital= $370,000

Therefore total paid-in capital at the end of 2018 is $370,000