Lee's Lions issued 15,000 shares of stock for $17 per share.The par value of the stock was $0.50 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 multiplied by the par value per share, which is 15,000 shares * $0.50 = $7,500. Additional paid-in capital is calculated as the total amount received (15,000 shares * $17 = $255,000) minus the capital stock ($7,500), resulting in $247,500.

Lee's Lions Issued 15,000 Shares of Stock for $17 Per