USE THE FOLLOWING INFORMATION FOR QUESTIONS 44 AND 45: Alex Company was incorpor

Question

USE THE FOLLOWING INFORMATION FOR QUESTIONS 44 AND 45: Alex 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, commulative, 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 sper share. Net income for the year ended December 31, 2012, was $375,000. The amount of Alex's total contributed capital at December 31, 2012, is The number of Alex's unissued shares of common stock December 31, 2012, is

Explanation / Answer

44.

A . $60,000

(8000*$5) + (2,000*$10) = $60,000

45.

D. 12,000

(20,000 - 8,000)

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