Getaway Publishing was recently organized as a corporation. The company issued common stock to an attorney who provided legal services worth $23,000 to help with the incorporation. Getaway also issued common stock to an inventor in exchange for her patent with a market value of $76,000. In addition, Getaway received cash both for the issuance of 9,000 shares of its preferred stock at $50 per share and for the issuance of 22,000 of its common shares at $8 per share. During the first year of operations, Getaway earned net income of $94,000 and declared a cash dividend of $26,000. Read the requirement³. Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions. Complete the table below by selecting the transactions that result in paid-in capital and then enter the amounts to calculate total paid-in capital for the period. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.) Transaction Paid-in capital (1) (2) (3) (4) (5) (6) Total paid-in capital 3: Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions.
Getaway Publishing was recently organized as a corporation. The company issued common stock to an attorney who provided legal services worth $23,000 to help with the incorporation. Getaway also issued common stock to an inventor in exchange for her patent with a market value of $76,000. In addition, Getaway received cash both for the issuance of 9,000 shares of its preferred stock at $50 per share and for the issuance of 22,000 of its common shares at $8 per share. During the first year of operations, Getaway earned net income of $94,000 and declared a cash dividend of $26,000. Read the requirement³. Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions. Complete the table below by selecting the transactions that result in paid-in capital and then enter the amounts to calculate total paid-in capital for the period. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.) Transaction Paid-in capital (1) (2) (3) (4) (5) (6) Total paid-in capital 3: Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions.
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 24CE
Related questions
Question
H1.
Transcribed Image Text:Getaway Publishing was recently organized as a corporation. The company issued common stock to an attorney who provided legal services
worth $23,000 to help with the incorporation. Getaway also issued common stock to an inventor in exchange for her patent with a market value of
$76,000. In addition, Getaway received cash both for the issuance of 9,000 shares of its preferred stock at $50 per share and for the issuance of
22,000 of its common shares at $8 per share. During the first year of operations, Getaway earned net income of $94,000 and declared a cash
dividend of $26,000.
Read the requirement³.
Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions.
Complete the table below by selecting the transactions that result in paid-in capital and then enter the amounts to calculate total paid-in capital for
the period. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero.)
Transaction
Paid-in capital
(1)
(2)
(3)
(4)
(5)
(6)
Total paid-in capital
3: Requirement
1. Without making journal entries, determine the total paid-in capital created by these transactions.
Transcribed Image Text:0000
Declared dividends
O Earned net income
O Issuance of common stock for a patent
O Issuance of common stock for cash
O Issuance of common stock for legal services
Issuance of preferred stock for cash
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College