May,IncHad the Following Transactions in 2019,its First Year of Operations

question 23

Multiple Choice

May,Inc.had the following transactions in 2019,its first year of operations: • Issued 20,000 shares of common stock.The stock has a par value of $3.00 per share and was issued at $19.00 per share.
• Issued 2000 shares of $200 par value preferred stock at par.
• Earned net income of $40,000.
• Paid no dividends.
At the end of 2019,what is the total amount of paid-in capital?

• A) $820,000
• B) $460,000
• C) $380,000
• D) $780,000

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Definitions:

Problem Solving

The process of identifying, analyzing, and resolving issues or obstacles.

Logical Fashion

An approach or method that is coherent, well-organized, and follows a clear, rational sequence.

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An individual who tends to ignore or evade situations that appear to be problematic or challenging.

Quality Control

A series of activities and procedures intended to ensure that products or services meet specified requirements and are dependable.