Reference no: EM132910790
Problem - Woods Company reported the following amounts in the stockholders' equity section of its December 31, 2020, balance sheet.
Preferred stock, 10%, $50 par value (10,000 shares authorized, 4,000 shares issued) $200,000
Common stock, $5 par value (100,000 shares authorized, 20,000 shares issued) 100,000
Paid-in Capital In Excess of Par - Preferred Stock 20,000
Paid-In Capital in Excess of Par - Common Stock 360,000
Total paid-In capital 680,000
Retained earnings 450,000
Total stockholders' equity $1,130,000
During 2021, Woods took part in the following transactions concerning stockholders' equity.
March 4 Issued 18,000 shares of common at $25 per share.
June 30 2-for-1 Stock Split for common stock.
July 9 Purchased 3,000 shares of its own outstanding common stock for $18 per share. Cleves uses the cost method.
Aug. 1 Sold 800 shares of treasury stock at $20 a share.
Oct. 10 Sold 1,000 shares of treasury stock at $15 a share.
Dec. 15 The preferred stock dividend is declared, and a common stock dividend of $.50 per share is declared.
Required - What is the amount of paid-in capital in excess of par that Woods should recognize when it issued 18,000 shares of common stock on March 4?