On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 70,300 sh

Question

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 70,300 shares of $10 par common stock at $15, and on November 19, it issued for cash 18,450 shares of preferred stock, $45 par at $56. Required: 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?

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

Explanation / Answer

31-Oct Cash 1054500 =70300*15       Common Stock 703000 =70300*10       Paid-In Capital in Excess of Par-Common Stock 351500 19-Nov Cash 1033200 =18450*56        Preferred Stock 830250 =18450*45        Paid-In Capital in Excess of Par-Preferred Stock 202950 B Total amount invested (total paid-in capital) = 1054500+1033200= $2087700

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