Ferris Company reported the following on its balance sheet: total contributed capital of $186,000,treasury stock of $19,500 and total stockholder's equity of $237,500.Ferris had 1,000,000 authorized shares of its $0.01 par value common stock of which 200,000 were outstanding. What was the amount of additional paid-in capital reported in the balance sheet?
A)$184,000
B)$2,000
C)$71,000
D)$51,500

Question

Quizplus · Accepted Answer

Total contributed capital = Par value of common stock issued + Additional paid-in capital
Additional paid-in capital = Total contributed capital − Par value of common stock issued
= $186,000 − (200,000 shares × 0.01 per share)= $184,000

Ferris Company Reported the Following on Its Balance Sheet: Total