Issuance of stock for cash and noncash assets (Learning Objective 3)

10–15 min.

Alley, Co., recently organized. The company issued no-par common stock to an attorney in exchange for his patent with a market value of $55,000. In addition, Alley, Co., received cash for 3,500 shares of its $50 par preferred stock sold at par value and for 9,000 shares of its no-par common stock sold at $6 per share. Retained earnings at the end of the first year was $39,000.

Requirement 1. Without making journal entries, determine the total paid-in capital created by these transactions.

AppendixLO1