E10-22A. The Voyage Company was recently established. The company issued ordinary shares to an
attorney who provided legal services worth $33,000 to help organize the corporation. The Voyage also
issued ordinary shares to an inventor in exchange for his patent with a market value of $124,500. In addition,
the Voyage received cash both for the issuance of 4,500 shares of its preference shares at $120 per share
and for the issuance of 30,000 of its ordinary shares at $1 per share. During the first year of operations, the
Voyage earned a net income of $75,000 and declared a cash dividend of $43,500. You don’t need to prepare
journal entries, but please determine the total paid-in capital created by these transactions.
5000 × 7 =$ 35000
7500
5000 ×$ 1 5
Mar 16 Dr Cash
:
.
G Common Stock
5000 ×$ 5 5
Cr APIC
.
-
Apr
.
20
Dr
:
-
Treasury
Cr
Ang
8
:
Dr
-
.
Cash
Tveasury
-
G APIC
.
=
27500
=
Shave1400 × 1622400
Cash
(o
$
=
.
.
1400 ×
16
=$ 22400
17000
( 1000× 16
Shave
16000
1000