Coastal Publishing was recently organized as a corporation. The company issued common stock to an attorney who

Question:

Coastal Publishing was recently organized as a corporation. The company issued common stock to an attorney who provided legal services worth $25,000 to help with the incorporation. Coastal also issued common stock to an inventor in exchange for her patent with a market value of $75,000. In addition, Coastal received cash both for the issuance of 10,000 shares of its preferred stock at $100 per share and for the issuance of 21,000 shares of its common shares at $5 per share. During the first year of operations, Coastal earned net income of $50,000 and declared a cash dividend of $28,000. Without making journal entries, determine the total paid-in capital created by these transactions.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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