Moretown Inc.had the following transactions in 2015,its first year of operations.
-At the end of 2015,what is the total amount of paid-in capital?

Question

Moretown Inc.had the following transactions in 2015,its first year of operations.  
-At the end of 2015,what is the total amount of paid-in capital?

Quizplus · Accepted Answer

The total amount of paid-in capital is the sum of common stock and additional paid-in capital.

Common stock:
- Issued 30,000 shares at $10 per share = $300,000

Additional paid-in capital:
- Sale of 5,000 shares at $20 per share = $100,000
- Sale of 10,000 shares at $25 per share = $250,000
- Exercise of stock options for 3,000 shares at $30 per share = $90,000

Total paid-in capital = Common stock + Additional paid-in capital
= $300,000 + ($100,000 + $250,000 + $90,000)
= $540,000

Therefore, the best answer is C) $540,000.