E13-18

Exposure to double taxation is evident. Entity can raise more money than a partnership or sole proprietorship. Government regulation is expensive. E13-18 Determining paid-in capital for a corporation Axilla Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $54,000. In addition, Axilla received cash for 3,000 shares of its $10 par preferred stock at par value and 6,000 shares of its no-par common stock at $35 per share. Without making journal entries, determine the total paid-in capital created by these transactions. E13-19 Journaling issuance of stock Skylar Systems completed the following stock issuance transactions: May 19 Issued 1, 700 shares of $2 par value common stock for cash of $9.50 per share. Jun. 3 Issued 200 shares of $9, no-par preferred stock for $10,000 cash. Received equipment with a market value of $76,000 in exchange for 3,000 shares of the $2 par value common stock