Measure paid-in capital of a corporation
Response to the following problem:
City Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $17,000 to help organize the corporation. City Publishing also issued common stock to an inventor in exchange for his patent with a market value of $64,000. In addition, City received cash both for the issuance of 5,000 shares of its preferred stock at $70 per share and for the issuance of 16,000 of its common shares at $5 per share. During the first year of operations, City Publishing earned net income of $74,000 and declared a cash dividend of $26,000. Without making journal entries, determine the total paid-in capital created by these transactions.