Question 17 1. Spartan Corporation was organized on January 1, 2011, with an aut

Question

Question 17
1.
Spartan Corporation was organized on January 1, 2011, with an authorization of 1,000,000 shares of $5 par value common stock. During 2011, Spartan had the following common stock transactions:
Jan. 4: Issued 100,000 shares @ $6 per share.
Apr. 8: Issued 200,000 shares @ $7 per share.
June 9: Issued 60,000 shares @ $10 per share.
July 29: Purchased 40,000 shares (treasury) @ $9 per share.
Dec. 31: Sold 40,000 shares held in treasury @ $12 per share.

Spartan had no other transactions affecting paid-in capital. At December 31, 2011, what is the total amount of paid-in capital?
Answer

A. $2,720,000

B. $1,800,000

C. $ 920,000

D. $ 800,000

E. None of the above

Explanation / Answer

closing balance at 31 dec 2011
(100000*6)+(200000*7)+(60000*10)-(40000*9)+(40000*12)
600000+1400000+600000-360000+480000=2720000


A. $2,720,000

B. $1,800,000

C. $ 920,000

D. $ 800,000

E. None of the above

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