Zyrkel Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 30000 shares authorized; 15,000 shares issued $ 300 , 000 Common stock, $ 10 parvalue, 2,000,000 shares authorized; 1 , 950 , 000 shares issued, 1 , 920 , 000 shares outstanding 19 , 500 , 000 Paid-in capital in excess of par-preferred stock 60 , 000 Paid-in capital in excess of par-common stock 27 , 000 , 000 Retained earnings 7 , 500 , 000 Treasury stock (30,000 shares) 630 , 000 \begin{array}{lr} ext {authorized; 15,000 shares issued} & \$ 300,000 \ ext {Common stock, \$ 10 parvalue, 2,000,000 shares authorized;} & \ ext { 1,950,000 shares issued, 1,920,000 shares outstanding} & 19,500,000\ ext { Paid-in capital in excess of par-preferred stock } & 60,000 \ ext { Paid-in capital in excess of par-common stock } & 27,000,000 \ ext { Retained earnings } & 7,500,000 \ ext { Treasury stock (30,000 shares) } & 630,000\end{array} authorized; 15,000 shares issued Common stock, $10 parvalue, 2,000,000 shares authorized; 1 , 950 , 000 shares issued, 1 , 920 , 000 shares outstanding Paid-in capital in excess of par-preferred stock Paid-in capital in excess of par-common stock Retained earnings Treasury stock (30,000 shares) $300 , 000 19 , 500 , 000 60 , 000 27 , 000 , 000 7 , 500 , 000 630 , 000 Zyrkel total paid-in capital wasA) $46960000.B) $47590000.C) $46330000.D) $27060000.

Question

Zyrkel Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $20 par value cumulative 30000 shares   authorized; 15,000 shares issued $ 300 , 000 Common stock,  $ 10  parvalue, 2,000,000 shares authorized; 1 , 950 , 000  shares issued,  1 , 920 , 000  shares outstanding 19 , 500 , 000  Paid-in capital in excess of par-preferred stock  60 , 000  Paid-in capital in excess of par-common stock  27 , 000 , 000  Retained earnings  7 , 500 , 000  Treasury stock (30,000 shares)   630 , 000 \begin{array}{lr}	ext {authorized; 15,000 shares issued} &  \$ 300,000 \	ext {Common stock,   \$ 10    parvalue, 2,000,000 shares authorized;} & \	ext {  1,950,000    shares issued,   1,920,000    shares outstanding} & 19,500,000\	ext { Paid-in capital in excess of par-preferred stock }  &  60,000 \	ext { Paid-in capital in excess of par-common stock }  &  27,000,000 \	ext { Retained earnings }  &  7,500,000 \	ext { Treasury stock (30,000 shares)  }  &  630,000\end{array} authorized; 15,000 shares issued Common stock, $10 parvalue, 2,000,000 shares authorized; 1 , 950 , 000 shares issued, 1 , 920 , 000 shares outstanding  Paid-in capital in excess of par-preferred stock   Paid-in capital in excess of par-common stock   Retained earnings   Treasury stock (30,000 shares)   ​ $300 , 000 19 , 500 , 000 60 , 000 27 , 000 , 000 7 , 500 , 000 630 , 000 ​   Zyrkel total paid-in capital wasA)  $46960000.B)  $47590000.C)  $46330000.D)  $27060000.

Alexa Rolon · Accepted Answer

Final Answer : A, Explanation :  To calculate the total paid-in capital, we need to add the amounts for all equity instruments.Total paid-in capital = Preferred stock + Common stock + Additional paid-in capitalGiven in the question,Preferred stock = 8% cumulative, $20 par value, 30000 sharesTherefore, the total value of preferred stock = 8% * $20 * 30000 = $4,800,000Since the preferred stock is cumulative, it means that any unpaid dividends on this stock will accumulate and must be paid before paying any dividends to common stockholders.There is no information given about the common stock or additional paid-in capital.Therefore, the total paid-in capital = $4,800,000 which is option A.

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