Manatee Company Manatee Company was incorporated as a new business on January 1,2012.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%,$10 par value,cumulative,participating preferred stock.On January 1,2012,the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31,2012,was $375,000.
Refer to the information about Manatee Company.
The amount of Manatee's total contributed capital at December 31,2012,is

Question

Quizplus · Accepted Answer

To calculate the total contributed capital, we need to add the par value of both common and preferred stock issued during the year to the proceeds received from the issuance.

1. Common stock: 8,000 shares x $5 par value = $40,000
2. Preferred stock: 2,000 shares x $10 par value = $20,000
3. Proceeds from issuance: (8,000 shares x $15) + (2,000 shares x $30) = $140,000

Total contributed capital = $40,000 + $20,000 + $140,000 = $200,000

Therefore, the correct answer is option C, $180,000.

Manatee Company Manatee Company Was Incorporated as a New Business