Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Panhandle Corporation was organized on January 3, 2012. The firm was authorized

ID: 2473510 • Letter: P

Question

Panhandle Corporation was organized on January 3, 2012. The firm was authorized to issue 180,000 shares of $6 par common stock. During 2012, Panhandle had the following transactions relating to shareholders' equity:

Issued 54,000 shares of common stock at $8 per share.

Issued 36,000 shares of common stock at $9 per share.

Reported a net income of $180,000.

Paid dividends of $90,000.


What is total paid-in capital at the end of 2012?

$936,000.

$756,000.

$666,000.

$846,000.

Panhandle Corporation was organized on January 3, 2012. The firm was authorized to issue 180,000 shares of $6 par common stock. During 2012, Panhandle had the following transactions relating to shareholders' equity:

Explanation / Answer

total paid-in capital at the end of 2012=Issued 54,000 shares of common stock at $8 per share.+Issued 36,000 shares of common stock at $9 per share+Reported a net income of $180,000-Paid dividends of $90,000=$846,000.