The Erhardt Corporation was incorporated on January 1,2014,with the following authorized capitalization:
•40,000 shares of common stock,no par value,stated value $40 per share
•10,000 shares of 5 percent cumulative preferred stock,par value $10 per share
During 2014,Erhardt issued 34,000 shares of common stock for a total of $1,700,000 and 6,000 shares of preferred stock at $16 per share.In addition,on December 20,2014,subscriptions for 2,000 shares of preferred stock were taken at a purchase price of $17.These subscribed shares were paid for on January 2,2015.What should Erhardt report as total contributed capital on its December 31,2014,balance sheet?

Question

Quizplus · Accepted Answer

The Answer of The Erhardt Corporation was incorporated on January 1,2014,with the following authorized capitalization:
•40,000 shares of common stock,no par value,stated value $40 per share
•10,000 shares of 5 percent cumulative preferred stock,par value $10 per share
During 2014,Erhardt issued 34,000 shares of common stock for a total of $1,700,000 and 6,000 shares of preferred stock at $16 per share.In addition,on December 20,2014,subscriptions for 2,000 shares of preferred stock were taken at a purchase price of $17.These subscribed shares were paid for on January 2,2015.What should Erhardt report as total contributed capital on its December 31,2014,balance sheet?

The Erhardt Corporation Was Incorporated on January 1,2014,with the Following