Question

Ginger Hardware was organized on January 1, 2021. The firm was authorized to issue 170,000 shares of $5 par value common stock. During 2021, Ginger Hardware had the following transactions relating to stockholders' equity: Issued 51,000 shares of common stock at $7 per share. Issued 34,000 shares of common stock at $8 per share. Reported a net income of $170,000. Paid dividends of $85,000. What is total paid-in capital at the end of 2021

Answer 1

$544,0000

Step-by-step explanation:

Shareholders equity = (51,000 * $7) + (34,000 * $8) = $629,000

Retained earnings = $170,000 - $85,000 = $85,000

Total paid-in capital = Shareholders equity - Retained earnings = $629,000 - $85,000 = $544,0000