Question

Zigma Corporation is authorized to issue 2,000,000 shares of $4 par value capital stock. The corporation issued half the stock for cash at $8 per share, earned $336,000 during the first three months of operation, and declared a cash dividend of $60,000. The total paid-in capital of Zigma Corporation after three months of operation is:

Answer 1

Total paid-in capital of Zigma Corporation = $4,000,000

Step-by-step explanation:

Given:

Number of authorized issue = 2,000,000

Half issued at $8 per share

Find:

Total paid-in capital of Zigma Corporation

Computation:

Total paid-in capital of Zigma Corporation = [Number of authorized issue][1/2][Paid up amount for each share]

Total paid-in capital of Zigma Corporation = [2,000,000][1/2][8]

Total paid-in capital of Zigma Corporation = [2,000,000][0.5][8]

Total paid-in capital of Zigma Corporation = [2,000,000][4]

Total paid-in capital of Zigma Corporation = $4,000,000