Lewelling Company issued 116,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 5,600 hours of legal services performed. Morgan’s usual rate is $260 per hour. By what amount should Lewelling’s paid-in capital - excess of par increase as a result of this transaction?

$1,340,000

Explanation:

The computation of the amount of aid-in capital - excess of par increase as a result of this transaction is shown below:

Total market value = Common stock + Additional paid-in capital account

Where,

Total market value is

= 5,600 hours × $260 per hour

= $1,456,000

Common stock

= 116,000 shares × $1

= $116,000

So, the additional paid in capital is

=  $1,456,000 - $116,000

= $1,340,000

hi there,

do u need ? ?

thx

it established new limitations on use and disclosure for marketing purposes, prohibited selling medical information, expanded individuals’ rights to accessing their own information, and to obtain restrictions from certain disclosures of protected heath information to health plans.