Notebook Company Had the Following Transactions in 2013, Its First

question 99

Multiple Choice

Notebook Company had the following transactions in 2013, its first year of operations.
• Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $50.00
Per share.
• Issued 100 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $95,000.
• Paid dividends of $5,000.
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At the end of 2013, how much was the total Paid-in capital?

• A) $190,000
• B) $110,000
• C) $90,000
• D) $200,000

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Definitions:

Paternity Suit

A lawsuit brought by an unmarried mother to establish that a certain person is the biological father of her child. DNA testing or a comparable procedure is often used to determine paternity.

Foster Care

A temporary arrangement in which a family is paid by the state to care for a child for a limited period of time, often pending adoption.

Temporary Arrangement

A provisional setup intended to serve a purpose for a limited period before a permanent solution is established.

Best Interests

A principle that guides decisions in the legal system, especially in family and child law, ensuring that the outcomes serve the optimal welfare of the individuals involved.