Paid-In Capital in Excess of Stated Value

a. is reported as part of paid-in capital on the balance sheet.

b. normally has a debit balance.

c. represents the amount of legal capital.

d. is credited when no-par stock does not have a stated value.

Katy Hooper Inc. issued 6,000 shares of no-par common stock with a stated value of $5 per share. The market price of the stock on the date of issuance was $14 per share. The entry to record this transaction includes a

a. debit to Cash for $30,000.

b. credit to Common Stock for $84,000.

c. credit to Common Stock for $30,000.

d. debit to Paid-in Capital in Excess of Par for $84,000.

The stockholders' equity section of Makoto Corporation's balance sheet at December 31, 2020, appears below:

Stockholders' equityPaid-in capitalCommon stock, $10 par value, 400,000 shares authorized;

250,000 issued and outstanding$2,500,000Paid-in capital in excess of par1,200,000Total paid-in capital3,700,000Retained earnings600,000Total stockholders' equity$4,300,000

During 2021, the following stock transactions occurred:

Jan. 18Issued 50,000 shares of common stock at $32 per share. Aug. 20Purchased 25,000 shares ofMakoto Corporation'scommon stock at $26 per share to be held in the treasury. Nov. 5Reissued 9,000 shares of treasury stock for $28 per share.

Prepare the journal entries to record the above stock transactions.

An inexperienced accountant for Chetola Corporation made the following entries.

July 1Cash240,000Common Stock240,000(Issued 15,000 shares of no-par common stock, stated value $10 per share)Sept. 1Common Stock32,000Retained Earnings4,000Cash36,000(Purchased 2,000 shares issued on July 1 for the treasury at $18 per share)Dec. 1Cash20,000Common Stock16,000Gain on of Stock4,000(Sold 1,000 shares of the treasury stock at $20 per share)

(a)

On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions.

The following information is available for Mint Corporation:

Common Stock ($10 par)$1,500,000Paid-in Capital in Excess of ParPreferred200,000Paid-in Capital in Excess of Stated ValueCommon750,000Preferred Stock450,000Retained Earnings800,000Treasury StockCommon50,000

Based on the preceding information, answer the following questions.

(a)

Calculate the total paid-in capital.

Total paid-in capital$