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A corporation was organized in January 2018 with authorized capital of $10 par value common stock....

A corporation was organized in January 2018 with authorized capital of $10 par value common stock. On February 1, 2018, shares were issued at par for cash. On March 1, 2018, the corporation's attorney accepted 7100 shares of common stock in settlement for legal services with a fair value of $92000. Additional paid-in capital would increase on

February 1, 2018

March 1, 2018

No

No

Yes

Yes

No

Yes

Yes

No
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Answer #1

On Feb 1st shares were issued for cash on par. There is no additional paid in capital.

On Mar 1st 7,100 shares are issued. Face value = $10 X 7,100 = $71,000

$71,000 face value shares are issued for $92,000.

Additional paid in capital = $92,000 - $71,000 = $21,000

No Yes

3rd option.

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