Question

Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $ 59 comma 000. In​ addition, Aster received cash for 1 comma 000 shares of its $ 15 par preferred stock at par value and 9 comma 500 shares of its​ no-par common stock at $ 20 per share. Without making journal​ entries, determine the total​ paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ .

Answer 1

$264,000 increase in paid in capital

Step-by-step explanation:

The company issued common stock to an inventor in exchange for a patent with a market value of $59,000.

• All we are told is that common stock were issued in exchange of a patent, therefore, so the paid in capital increased by $59,000.

In​ addition, Aster received cash for 1 comma 000 shares of its $ 15 par preferred stock at par value and 9 comma 500 shares of its​ no-par common stock at $ 20 per share.

• The company increased its paid in capital in two different ways: $15,000 in preferred stocks + $190,000 in non-par common stocks = $205,000

total increase in paid in capital = $59,000 + $205,000 = $264,000