The Following Information Is from the December 31,2018 Balance Sheet

question 141

Multiple Choice

The following information is from the December 31,2018 balance sheet of May Corporation. $$\begin{array} { | l | r | } \hline \text { Preferred Stock, } \$ 100 \text { par } & \$ 390,000 \\\hline \text { Paid-In Capital in Excess of Par-Preferred } & 25,000 \\\hline \text { Common Stock, } \$ 1 \text { par } & 152,000 \\\hline \text { Paid-In Capital in Excess of Par-Common } & 346,000 \\\hline \text { Retained Earnings } & \$ 3,900 \\\hline \text { Total Stockholders' Equity } & \$ 996,900 \\\hline\end{array}$$ What was the total paid-in capital as of December 31,2018?

• A) $736,000
• B) $996,900
• C) $913,000
• D) $888,000

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Definitions:

Trade Accounts Payable

Liabilities owed by a business to its suppliers or creditors for inventory or services received that are yet to be paid for.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received.

Potential Lawsuit

A legal challenge or claim that has not yet been filed but has the possibility to be brought forward because of existing disputes.

Contingent Liabilities

Possible obligations that may arise in the future due to past events, depending on the occurrence of certain uncertain events.