Mitchell Corporation received $11,500,000 for the issuance of its stock on May 14. The par value of

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Mitchell Corporation received $11,500,000 for the issuance of its stock on May 14. The par value of the Mitchell Corporation stock was only $ 11,500. Was the excess amount of $ 11,488,500 a profit to Mitchell Corporation? If not, what was it?
Suppose the par value of the Mitchell Corporation stock had been $2 per share, $4 per share, or $7 per share. Would a change in the par value of the company's stock affect Mitchell Corporation's total paid-in capital? Give the reason for your answer.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

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