Ted’s Hats issued 20,000 shares of stock for $20 per share.  The par value of the stock was $1 per share.  Calculate the value of capital stock and additional paid-in capital. Group of answer choices A)Capital stock $400,000; additional paid-in capital $0. b)Capital stock $380,000; additional paid-in capital $20,000. c)Capital stock $20,000; additional paid-in capital $380,000. d)Capital stock $0; additional paid-in capital $400,000. E)None of the abov

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Ted’s Hats issued 20,000 shares of stock for $20 per share.  The par value of the stock was $1 per share.  Calculate the value of capital stock and additional paid-in capital.

Group of answer choices
A)Capital stock $400,000; additional paid-in capital $0.
b)Capital stock $380,000; additional paid-in capital $20,000.
c)Capital stock $20,000; additional paid-in capital $380,000.
d)Capital stock $0; additional paid-in capital $400,000.
E)None of the above
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