Team Shirts issued 20,000 shares of stock for $20 per share.The par value of the stock was $1 per share.Calculate the value of capital stock and additional paid-in capital.

Question

Quizplus · Accepted Answer

Capital stock is calculated as the number of shares issued multiplied by the par value per share, which is 20,000 shares * $1 = $20,000. Additional paid-in capital is calculated as the total amount received (20,000 shares * $20 = $400,000) minus the capital stock ($20,000), resulting in $380,000.

Team Shirts Issued 20,000 Shares of Stock for $20 Per