#2) The following are the account balances of Kahn Co. at August 31, 2014: Divid

ID: 2716031 • Letter: #

Question

#2) The following are the account balances of Kahn Co. at August 31, 2014:

Dividends Payable................................ $ 15,000 Cash......................$109.000

Perferred Stock $150 per................... 75,000 Common Stock, $10 per....... 2,400,000

Paid-in Capital in Excess of Par-Common....... Retainned Earrings................300,000

Gray's total paid-in capital at Auguest 31, 2014, is

A) $60,000

B) $2,827,500

C) $2,527,500

D) $2,535,000

Gary's Total Paid-in Capital is calculated as :

Common Stock = $ 2,400,000

Preferred Stock = $ 75,000

Total Paid-in Capital (not corresponding with any of the solutions given) = $ 2,475,000

Since the amouny closest to this is $ 2,535,000, hence D) appears to be the solution.

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