Roscoe Company was incorporated as a new business on January 1, 2013. The compan
ID: 2469490 • Letter: R
Question
Roscoe Company was incorporated as a new business on January 1, 2013. 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, preferred stock. The company actually 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, 2013, was $375,000.
The total amount of contributed capital at December 31, 2013, is
$60,000.
$120,000.
$180,000.
$555,000.
none of the above
a.$60,000.
b.$120,000.
c.$180,000.
d.$555,000.
e.none of the above
Explanation / Answer
Share Capital 8000 Shares issued at $5 40000 Paid in Capital in Excess of Par 80000 Total Amount of Contributed Capital is 120000 Answer is option b
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