2,000,000 shares of capital stocks at $3 par value were issued the company issued half of the stock for cash at $8 per share, and earnded $90,000 during the first three months of operation , and declared a cash dividend of $15,000 what would be the total paid in capital after three months of operation
To calculate the total paid-in capital after three months of operation, we need to consider the issuance of stock for cash, the earnings of the company, and the payment of dividends.
First, let's calculate the initial paid-in capital from the issuance of stock for cash.
The company issued 2,000,000 shares of capital stock. Half of these shares were issued for cash at $8 per share. So, the number of shares issued for cash is 2,000,000 / 2 = 1,000,000 shares.
The price per share is $8.
The total paid-in capital from the issuance of stock for cash is: 1,000,000 shares x $8 per share = $8,000,000.
Next, let's calculate the retained earnings of the company after three months of operation.
The company earned $90,000 during the first three months of operation.
Now, let's calculate the total paid-in capital after considering the dividend payment.
The company declared a cash dividend of $15,000.
To calculate the total paid-in capital after three months, we need to sum the initial paid-in capital, retained earnings, and deduct the dividend payment.
Total paid-in capital after three months = Initial paid-in capital + Retained Earnings - Dividends
Total paid-in capital after three months = $8,000,000 + $90,000 - $15,000
Total paid-in capital after three months = $8,075,000
Therefore, the total paid-in capital after three months of operation would be $8,075,000.