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A company sold 1,000 shares of $10 par value common stock at $12 and 1,000 shares of $25 par value preferred stock at $30. What is the total increase in the company's paid-in capital as a result of these transactions

Respuesta :

The total increase in paid-in capital is $35,000.

Paid-in capital is the value of cash that a company's shareholders pay in exchange for receiving the company's stock. It is the sum of the par value of the common stock and the preferred stock.

Paid-in capital = par value of common stock + par value of the preferred stock

Par value of common stock =  1000 x $10 = $10,000

Par value of the preferred stock = $25 x 1000 = $25,000

Paid-in capital = $25,000 + $10,000 = $35,000

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