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Question

and learning resource from Cengage Learning v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentid 698016 CengageNowv2 1 Online teaching and learning resource from Cengage Leaming 3. EX.12-03 ALGO (Algorithmic) eBook Shew He How Entries for Issuing Par Stock On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 65,000 shares of $18 par common stock at $61, and on February 27, it issued for cash 140,000 shares of preferred stock ss par at $9. a. Journalize the entries for January 22 and February 27, If an amount box does not require an entry, leave it blank Jan. 22 Feb. 27 b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27

Explanation / Answer

ans)

a) Jan 22 Cash (65000 X 61) 3965000

Common stock (65000 X 18) 1170000

Paid - in - capital in excess of par - common stock 2795000

(65000 X (61-18))

Feb 27 Cash (140,000 X 9) 1260000

Preferred stock (140,000 X 5) 700,000

Paid in capital in excess of par - preferred 560,000

(140,000 X (9-5))

2) Amount invested by stock holders as of febraury 27 = 3965000 + 1260000 = 5225000