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Chapter 13: Q21E_2 (page 712)

Journalizing issuance of stock

Steller Systems completed the following stock issuance transactions:

May 19 Issued 1,700 shares of \(3 par value common stock for cash of \)10.50 per share.

Jun. 3 Issued 300 shares of \(9, no-par preferred stock for \)15,000 cash.

11 Received equipment with a market value of \(68,000 in exchange for 5,000 shares of the \)3 par value common stock.

Requirements

2. How much paid-in capital did these transactions generate for Steller Systems?

Short Answer

Expert verified

Total Paid-in capital in excess of par is $65,750

Step by step solution

01

Basic Introduction-

Capital more than par is the sum paid by stockholder to a company for its stock, in excess of the par value of the stock.

02

Calculation of paid in capital

May 19

Paid-in capital in excess of par

$12,750

Jun 11

Paid-in capital in excess of par

$53,000

$65,750

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