EX 13-3 Entries for issuing par stock

On January 14, Mountain Rocks Inc., a marble contractor, issued for cash 24,000 shares of $25 par common stock at $32, and on March 17, it issued for cash 60,000 shares of $10 par preferred stock at $11.

a. Journalize the entries for January 14 and March 17.
b. What is the total amount invested (total paid-in capital) by all stockholders as of March 17?


Answer:

a. Jan. 14 Cash .............................................................. 768,000
 Common Stock ....................................... 600,000
 Paid-In Capital in Excess of Par—
 Common Stock .................................. 168,000
 Mar. 17 Cash .............................................................. 660,000
 Preferred Stock ....................................... 600,000
 Paid-In Capital in Excess of Par—
 Preferred Stock.................................. 60,000
b. $1,428,000 ($768,000 + $660,000)

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