On December 31 20XX 5000 shares of Company As 100 par prefer

On December 31, 20XX, 5,000 shares of Company A\'s $100 par preferred stock was issued and outstanding. The preferred shares had been issued for $35,000 over their par value. In addition, 190,000 shares of the company\'s $1 par common stock was issued and outstanding. The common shares had been issued for $3 per share. What is the total paid-in capital reported on Company A\'s December 31, 20XX balance sheet?

$605,000

$725,000

$1,105,000

$1,295,000

Solution

Total value of preferred stock-par and additonal paid in capital(5000*100+$35000) $535000 Total value of common stock-par and additonal paid in capital(190,000*1+190,000*2) $570,000 Total paid-in capital reported $1,105,000