Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet w holes
ID: 2600092 • Letter: E
Question
Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet w holesaler, issued for cash 130,000 shares of no-par common stock (with a stated value of $6) at $24, and on June 30, it issued for cash 30,000 shares of preferred stock, $65 par at a. Journalize the entries for May 15 and June 30, assuming that the common stock is to be credited with the stated value If an amount box does not require an entry, leave it blank. 69. May 15 June 30 b.What is the total amount invested (total paid-in capital) by all stockholders as of June 30?Explanation / Answer
SOLUTION
(A) Journal Entries
(B) Total amount invested =$3,120,000 + $2,070,000 = $5,190,000
Date Accounts title and Explanations Debit ($) Credit ($) May 15 Cash (130,000*$24) 3,120,000 Common stock (130,000*$6) 780,000 Paid in Capital in excess of Par- common stock 2,340,000 June 30 Cash (30,000 * $69) 2,070,000 Preferred Stock (30,000 * $65) 1,950,000 Paid in Capital in excess of par-Preferred Stock 120,000Related Questions
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