Overton Company Had the Following Transactions in 2012, Its First

question 2

Multiple Choice

Overton Company had the following transactions in 2012, its first year of operations.
• Issued 5,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30.00
Per share.
• Earned net income of $200,000.
• Paid dividends of $5.00 per share.
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At the end of 2012, how much is the total Paid-in capital?

• A) $150,000
• B) $325,000
• C) $175,000
• D) $200,000

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Definitions:

Administrative Expense Budget

A projection of the costs associated with the general administration and management of a business.

Variable Cost

Costs that change in proportion to the level of production activity or business operations.

Monthly Fixed Cost

Regular, consistent costs that do not vary with production volume or business activity level, calculated on a monthly basis.

Budgeted Sales

The projected amount of sales revenue that a company plans to achieve in a specific period, based on market analysis and company goals.