Question

Presented below is information related to Sheridan Company: Common Stock, $1 par $3470000 Paid-in Capital in Excess of Par―Common Stock 553000 Preferred 8 1/2% Stock, $50 par 2060000 Paid-in Capital in Excess of Par―Preferred Stock 410000 Retained Earnings 1400000 Treasury Common Stock (at cost) 160000 The total paid-in capital (cash collected) related to the common stock is

a. $3470000.
b. $4023000.
c. $3880000.
d. $5410000.

Answer 1

Answer:

b.$4,023,000

Explanation:

The computation of total paid-in capital (cash collected) is shown below:-

Total paid-in capital (cash collected) = Common Stock +  Paid-in Capital in Excess of Par―Common Stock

= $3,470,000 + 553,000

= $4,023,000

Therefore for computing the Total paid-in capital (cash collected) we simply applied the above formula.