Green? Apron, Inc. had the following transactions in? 2017, its first year of? o
ID: 2530596 • Letter: G
Question
Green? Apron, Inc. had the following transactions in? 2017, its first year of? operations: 1. Issued 37000 shares of common stock. Stock has par value of $ 1.00 per share and was issued at $21.00 per share. 2. Earned net income of $ 71000 3. Paid no dividends. At the end of? 2017, what is the total amount of? paid-in capital? A. $ 777000 B. $ 37000 C. $ 71000 D. $ 84800
part 2.
Overton, Inc. had the following transactions in? 2017, its first year of? operations: 1. Issued 12 comma 000 shares of common stock. Stock has par value of $ 0.01 per share and was issued at $ 35.00 per share. 2. Earned net income of $ 200000. 3. Paid dividends of $ 12.00 per share. At the end of? 2017, what is total? stockholders' equity? A. $ 476000 B. $ 420000 C. $ 764000 D. $ 56000
Explanation / Answer
SOLUTION
(A) Total amount of? paid-in capital is $ 777000.
Amount of paid in capital = No. of shares * Issue price
= 37,000 shares * $21
= $777,000
(B) Total? stockholders' equity = $476,000
Total? stockholders' equity = (No. of shares * Issue price) + (Net income - Dividend)
= (12,000 * $35) + ($200,000 - (12,000*$12))
= $420,000 + ($200,000 - $144,000)
= $420,000 + $56,000
= $476,000
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