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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Polk Corporation was organized on January 2, 2019, with authorized capital of 100,000 shares of $10 par value common stock. During 2019, Polk had the following transactions:

Chapter 15, Problem 4MC, Polk Corporation was organized on January 2, 2019, with authorized capital of 100,000 shares of 10

What should be the amount of additional paid-in capital at December 31, 2019?

  1. a. $4,000
  2. b. $14,000
  3. c. $40,000
  4. d. $44,000

To determine

Compute the amount of additional paid in capital at December 31, 2019

Explanation

Additional paid-in-capital: It is an amount of capital received from the shareholders in excess of par value.

Compute the additional paid-in capital of Corporation P.

Additional paid-in capital} = {Issue of 20,000 shares in excess of par value + Issue of 1,000 shares for legal services in excess of par value}=(20,000 shares×($12–$10

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