Poodle Corporation was organized on January 3, 2018. The firm was authorized to
ID: 2510237 • Letter: P
Question
Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity:
Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
What is total paid-in capital at the end of 2018?
$420,000.
$370,000
$470,000
$320,000
a.$420,000.
b.$370,000
c.$470,000
d.$320,000
Explanation / Answer
b. $370,000
Total paid-in capital at the end of 2018 is:
= (30,000 x $7) + (20,000 x $8)
= $370,000