Question

Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 130,000 shares of $9 par value common stock. During 2021, Clothing Emporium had the following transactions relating to stockholders' equity: Issued 39,000 shares of common stock at $11 per share. Issued 26,000 shares of common stock at $12 per share. Reported a net income of $130,000. Paid dividends of $65,000. What is total paid-in capital at the end of 2021?

Answer 1

The total paid-in capital so far is $741,000.00

Step-by-step explanation:

Paid is the total amount that equity stockholders have invested in Clothing Emporium during 2021.

The paid-in capital during year is calculated thus:

Issue of 39000 shares(39000*$11) $429,000

Issue of 26000 shares(26000*$12) $312,000

Total paid-in capital $741,000

It is imperative to note that 65.000 shares out of the authorized shares of 130,000 have been issued so far,hence the balance of authorized shares not yet issued is 65000 shares(130000-65000)