B is corrent. Total contributed capital is total legal capital plus other paid-in amounts. Thus, the $600,000 received for common and the $48,000 received for preferred are part of contributed capital. Also, when the 1,000 shares of preferred were subscribed for $17 in December, the following entry was made:Stock subscriptions receivable| | Preferred stock subscribed |
| $17,000 | $10,000 | | | 7,000 |
Both the preferred stock subscribed and the paid-in capital on preferred are considered contributed capital. Thus, the contributed capital consists of| Common | $600,000 | | Preferred | 48,000 | | Preferred subscribed | 17,000 | | | $665,000 |
A is incorrect.Total contributed capital is total legal capital plus other paid-in amounts. Thus, the $600,000 received for common and the $48,000 received for preferred are part of contributed capital. Also, when the 1,000 shares of preferred were subscribed for $17 in December, the following entry was made:Stock subscriptions receivable| | Preferred stock subscribed |
| $17,000 | $10,000 | | | 7,000 |
Both the preferred stock subscribed and the paid-in capital on preferred are considered contributed capital. Thus, the contributed capital consists of| Common | $600,000 | | Preferred | 48,000 | | Preferred subscribed | 17,000 | | | $665,000 |
C is incorrect. Total contributed capital is total legal capital plus other paid-in amounts. Thus, the $600,000 received for common and the $48,000 received for preferred are part of contributed capital. Also, when the 1,000 shares of preferred were subscribed for $17 in December, the following entry was made:Stock subscriptions receivable| | Preferred stock subscribed |
| $17,000 | $10,000 | | | 7,000 |
Both the preferred stock subscribed and the paid-in capital on preferred are considered contributed capital. Thus, the contributed capital consists of| Common | $600,000 | | Preferred | 48,000 | | Preferred subscribed | 17,000 | | | $665,000 |
D is incorrect.Total contributed capital is total legal capital plus other paid-in amounts. Thus, the $600,000 received for common and the $48,000 received for preferred are part of contributed capital. Also, when the 1,000 shares of preferred were subscribed for $17 in December, the following entry was made:Stock subscriptions receivable| | Preferred stock subscribed |
| $17,000 | $10,000 | | | 7,000 |
Both the preferred stock subscribed and the paid-in capital on preferred are considered contributed capital. Thus, the contributed capital consists of| Common | $600,000 | | Preferred | 48,000 | | Preferred subscribed | 17,000 | | | $665,000 |
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