Richards Corporation was organized on January 3, 2012. The firm was authorized t

Question

Richards Corporation was organized on January 3, 2012. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 2012, Panhandle 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 2012?



a. $420,000.

b. $370,000.

c. $470,000.

d. $320,000.


please answer with detail, so we can eliminate guessing, thank you.

Explanation / Answer

paid up capital=(30000*7)+(20000*8) 210000+160000=$370000

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