Amlin Corporation was incorporated on January 1, 2019, with the following authorized capitalization: 20,000 shares of

Question:

Amlin Corporation was incorporated on January 1, 2019, with the following authorized capitalization:
• 20,000 shares of common stock, no-par value, stated value $40 per share
• 5,000 shares of 5% cumulative preferred stock, par value $10 per share
During 2019, Amlin issued 12,000 shares of common stock for a total of $600,000 and 3,000 shares of preferred stock at $16 per share. In addition, on December 21, 2019, subscriptions for 1,000 shares of preferred stock were taken at a purchase price of $17. These subscribed shares were paid for on March 4, 2020. What should Amlin report as total contributed capital on its December 31, 2019, balance sheet issued on February 1, 2020?
a. $520,000
b. $648,000
c. $665,000
d. $850,000

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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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