Backup Corp

question 198

Essay

Backup Corp. received a charter authorizing 120,000 shares of common stock at $15 par value per share. During the first year of operations, 40,000 shares were sold at $28 per share. 600 shares were issued in payment of a current operating debt of $18,600. In the first year, the net income was $142,000.

During the year, dividends of $36,000 were paid to stockholders. At the end of the year, total liabilities were $82,000. Use the given data to compute the following items at the end of the first year (show all computations):
(1) Total liabilities and stockholders' equity
(2) Stockholders' equity
(3) Contributed capital
(4) Issued capital stock (par)
(5) Outstanding capital stock (par)
(6) Unissued capital stock (number of shares)
(7) Paid-In capital in excess of par value

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Definitions:

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Alcohol Users

Individuals who consume alcoholic beverages, either occasionally or regularly.

Nonusers

Individuals who do not use or participate in a specific service, product, or substance, in contrast to those who are active users.

Face Validity

The degree to which an assessment or test appears to measure what it is supposed to measure, based purely on superficial characteristics.