Percy Corporation was organized on January 1, 2014, with an authorization of 1,2

Question

Percy Corporation was organized on January 1, 2014, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. During 2014, the corporation had the following capital transactions: January 5 issued 450,000 shares @ $10 per share July 28 purchased 60,000 shares @ $11 per share December 31 sold the 60,000 shares held in treasury @ $18 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2014?

Explanation / Answer

Answer is 2220000

Additional capitatl on issue(450000*(10-6)) 1800000 Additional capitatl on sales(60000*(18-6)) 720000 Total 2520000 less :Additional capitatl on sales(60000*(11-6)) 300000 Answer 2220000

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