Fahnstock Company has the following information available for the most current year:
$\begin{array} { l }
\text {Paid-in capital, January 1, 2014 }&\$ 475,000\
\text {Retained earnings, January 1, 2014 }&\$100,000 \
\text { Total revenues in 2014}&\$ 870,000\
\text {Total expenses in 2014 }&\$550,000 \
\text {Dividend declared in 2014 }&\$70,000 \
\text {Dividend paid in 2014 }&\$ 0\
\text {Investments by owners in 2014 }&\$10,000 \
\end{array}$

What was the total amount of paid-in capital for Fahnstock Company at December 31,2014?
A) $475,000
B) $485,000
C) $535,000
D) $835,000

Question

Fahnstock Company has the following information available for the most current year:
$\begin{array} { l  }
 \text {Paid-in capital, January 1, 2014 }&\$ 475,000\
 \text {Retained earnings, January 1, 2014 }&\$100,000 \
 \text { Total revenues in 2014}&\$ 870,000\
 \text {Total expenses in 2014 }&\$550,000 \
 \text {Dividend declared in 2014 }&\$70,000 \
 \text {Dividend paid in 2014  }&\$ 0\
 \text {Investments by owners in 2014 }&\$10,000 \
\end{array}$

What was the total amount of paid-in capital for Fahnstock Company at December 31,2014?
A) $475,000
B) $485,000
C) $535,000
D) $835,000

Quizplus · Accepted Answer

The total amount of paid-in capital at December 31, 2014, is the sum of the paid-in capital at the beginning of the year ($475,000) and the investments by owners during the year ($10,000), which equals $485,000.

Fahnstock Company Has the Following Information Available for the Most