The following information is available for Mint Corporation

The following information is available for Mint Corporation:

Common Stock ($10 par) $1,500,000

Paid-in Capital in Excess of Par - Preferred 200,000

Paid-in Capital in Excess of Stated Value - Common 750,000

Preferred Stock 450,000

Retained Earnings 800,000

Treasury Stock - Common 50,000

Instructions

Based on the preceding information, calculate each of the following:

(a) Total paid-in capital.

(b) Total stockholders\' equity

Solution

(a) Total paid-in capital = [Common Stock + Paid-in Capital in Excess of Par +

                                        Paid-in Capital in Excess of Stated Value+ Preferred Stock]

=> Total paid-in capital = ($1,500,000 + $200,000 + $750,000 + $450,000)

                                      = $2,900,000

(b) Total stockholders\' equity = Total paid-in capital + Retained Earnings - Treasury Stock

     Total stockholders\' equity = ($2,900,000 + $800,000 - $50,000)

                                                  = $3,650,000