Mendes Charters reported the following information at December 31, 2016: Preferred stock, $\$ 100$ par, 500 shares authorized, and outstanding;
$\begin{array}{lr}
\text { cumulative; nonparticipating; callable at par value } & \$ 0,000 \
\text { Common stock, } \$ 12 \text { par, } 50,000 \text { shares authorized and outstanding } & 600,000 \
\text { Additional paid-in capital-Common } & 25,000 \
\text { Retained earnings } & 825,000
\end{array}$ Mendes' total contributed capital is

Question

Mendes Charters reported the following information at December 31, 2016: Preferred stock, $\$ 100$ par, 500 shares authorized, and outstanding; 
$\begin{array}{lr}
\text { cumulative; nonparticipating; callable at par value } & \$ 0,000 \
\text { Common stock, } \$ 12 \text { par, } 50,000 \text { shares authorized and outstanding } & 600,000 \
\text { Additional paid-in capital-Common } & 25,000 \
\text { Retained earnings } & 825,000
\end{array}$ Mendes' total contributed capital is

Quizplus · Accepted Answer

Total contributed capital includes the par value of all classes of stock plus any additional paid-in capital. For Mendes Charters, this includes the par value of the preferred stock (\$100 * 500 = \$50,000), the par value of the common stock (\$600,000), and the additional paid-in capital for the common stock (\$25,000). Adding these together gives \$50,000 + \$600,000 + \$25,000 = \$675,000.

Mendes Charters Reported the Following Information at December 31, 2016 $100\$ 100$100

Mendes Charters Reported the Following Information at December 31, 2016 $\$ 100$