Backup Corp. received a charter authorizing 120,000 shares of common stock at $15 par value per share. During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued in payment of a current operating debt of $18,600. In the first year, the net income was $142,000.

During the year, dividends of $36,000 were paid to stockholders. At the end of the year, total liabilities were $82,000. Use the given data to compute the following items at the end of the first year (show all computations):
(1) Total liabilities and stockholders' equity
(2) Stockholders' equity
(3) Contributed capital
(4) Issued capital stock (par)
(5) Outstanding capital stock (par)
(6) Unissued capital stock (number of shares)
(7) Paid-In capital in excess of par value

Question

Backup Corp. received a charter authorizing 120,000 shares of common stock at $15 par value per share. During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued in payment of a current operating debt of $18,600. In the first year, the net income was $142,000.

During the year, dividends of $36,000 were paid to stockholders. At the end of the year, total liabilities were $82,000. Use the given data to compute the following items at the end of the first year (show all computations):
(1)	Total liabilities and stockholders' equity
(2)	Stockholders' equity
(3)	Contributed capital
(4)	Issued capital stock (par)
(5)	Outstanding capital stock (par)
(6)	Unissued capital stock (number of shares)
(7)	Paid-In capital in excess of par value

Quizplus · Accepted Answer

The Answer of Backup Corp. received a charter authorizing 120,000 shares of common stock at $15 par value per share. During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued in payment of a current operating debt of $18,600. In the first year, the net income was $142,000.

During the year, dividends of $36,000 were paid to stockholders. At the end of the year, total liabilities were $82,000. Use the given data to compute the following items at the end of the first year (show all computations):
(1)	Total liabilities and stockholders' equity
(2)	Stockholders' equity
(3)	Contributed capital
(4)	Issued capital stock (par)
(5)	Outstanding capital stock (par)
(6)	Unissued capital stock (number of shares)
(7)	Paid-In capital in excess of par value