The following information is from the December 31,2018 balance sheet of May Corporation. $$\begin{array} { | l | r | }
\hline \text { Preferred Stock, } \$ 100 \text { par } & \$ 390,000 \
\hline \text { Paid-In Capital in Excess of Par-Preferred } & 25,000 \
\hline \text { Common Stock, } \$ 1 \text { par } & 152,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & 346,000 \
\hline \text { Retained Earnings } & \$ 3,900 \
\hline \text { Total Stockholders' Equity } & \$ 996,900 \
\hline
\end{array}$$ What was the total paid-in capital as of December 31,2018?

Question

The following information is from the December 31,2018 balance sheet of May Corporation. $$\begin{array} { | l | r | } 
\hline \text { Preferred Stock, } \$ 100 \text { par } & \$ 390,000 \
\hline \text { Paid-In Capital in Excess of Par-Preferred } & 25,000 \
\hline \text { Common Stock, } \$ 1 \text { par } & 152,000 \
\hline \text { Paid-In Capital in Excess of Par-Common } & 346,000 \
\hline \text { Retained Earnings } & \$ 3,900 \
\hline \text { Total Stockholders' Equity } & \$ 996,900 \
\hline
\end{array}$$ What was the total paid-in capital as of December 31,2018?

Quizplus · Accepted Answer

Total paid-in capital includes the par value of preferred and common stock plus the paid-in capital in excess of par for both types of stock. Therefore, it's calculated as $390,000 (Preferred Stock) + $25,000 (Paid-In Capital in Excess of Par-Preferred) + $152,000 (Common Stock) + $346,000 (Paid-In Capital in Excess of Par-Common) = $913,000.

The Following Information Is from the December 31,2018 Balance Sheet