On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 79,500 sh

Question

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 79,500 shares of $10 par common stock at $11, and on November 19, it issued for cash 19,070 shares of preferred stock, $45 par at $56.

Required:

What is the total amount invested (total paid-in capital) by all stockholders as of November 19?

Income Summary

A. Journalize the entries for October 31 and November 19. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

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A. Journalize the entries for October 31 and November 19. Refer to the Chart of Accounts for exact wording of account titles. B.

What is the total amount invested (total paid-in capital) by all stockholders as of November 19?

CHART OF ACCOUNTS Legacy Rocks Inc. General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390

Income Summary

A. Journalize the entries for October 31 and November 19. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

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Explanation / Answer

B. Total amount invested (total paid-in capital) by all stockholders as of November 19: $1942420.

(79500 x $11) + (19070 x $56) = $1942420.

A. Date Description Post. Ref. Debit Credit Assets Liabilities Equity 1 Oct. 31 Cash (79500 x $11) 874500 874500 2 Common stock (79500 x $10) 795000 795000 3 Paid-in capital in excess of par-common stock (79500 x $1) 79500 79500 4 Nov. 19 Cash (19070 x $56) 1067920 1067920 5 Preferred stock (19070 x $45) 858150 858150 6 Paid-in capital in excess of par-preferred stock (19070 x $11) 209770 209770

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