Trans World Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided

Question:

Trans World Publishing Inc. was recently organized. The company issued common shares to a lawyer who provided legal services of $15,000 to help organize the corporation. Trans World also issued common shares to an inventor in exchange for his patent with a fair value of $80,000. In addition, Trans World received cash both for the issuance of 5,000 of its preferred shares at $110 per share and for the issuance of 20,000 common shares at $20 per share. During the first year of operations, Trans World earned net income of $55,000 and declared a cash of $20,000. Without making journal entries, determine the total share capital created by these transactions.
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...