Question

Question 6

Entries for Issuing Par Stock On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 55,000 shares of $18 par common stock at $61, and on February 27, it issued for cash 140,000 shares of preferred stock, $4 par at $7. a. Journalize the entries for January 22 and February 27. If an amount box does not require an entry, leave it blank. Jan. 22 Cash Common Stock Paid-In Capital in Excess of Par-Common Stock Feb. 27 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27?

Answer 1

jan 22	cash a/c	3,355,000
	...To common stock		990,000
	...To paid in capital in excess of par common stock		2,365,000
	(cash = $61*55,000 shares =>3,355,000) (common stock = $18*55,000=>990,000) (3,355,000-990,000 =>2.365.000)
feb 27	cash a/c.....(140,000*$7)	980,000
	..........To preferred stock a/c (140,000*$4)		560,000
	.........To paid in capital in excess of par preferred stock (140,000*$3)		420,000

b.Total paid in capital = total cash received = 3,355,000+980,000 =>4,335,000.