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    Paid In Capital Computations

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    Presented below is information related to Edis Corporation:
    Common Stock, $1 par $4,300,000
    Paid-in Capital in Excess of Par?Common Stock 550,000
    Preferred 8 1/2% Stock, $50 par 2,000,000
    Paid-in Capital in Excess of Par?Preferred Stock 400,000
    Retained Earnings 1,500,000
    Treasury Common Stock (at cost) 150,000

    2. The total paid-in capital (cash collected) related to the common stock is ???

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    Solution Preview

    The cash collected for the sale of common stock totals 4,300,000 + 550,000 = 4,850,000. Normally, the term 'paid in capital' refers to the total contributed capital, regardless of how classified between common stock at par AND paid in capital in excess of par. I could read your question ...

    Solution Summary

    The solution discusses the components of paid in capital as it relates to cash collected. Treasury stock is discussed and the meaning of the term, paid in capital.