Question

Entries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 180,000 shares of no-par common stock (with a stated value of $3) at $12, and on June 30, it issued for cash 30,000 shares of preferred stock, $80 par at $85. 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. May 15 Cash Common Stock Paid-In Capital in Excess of stated Valbe Common Stock June 30 Cash Preferred Stock Paldin Capital in Excess of Par. Preferred Stod Recall that a separate account is used for recording the amount of each class of stock issued to investors in a corporation Reche definition of legal capital and what affect that has on recording the sale of stock. Learning objective 2 A 400 Check My Work De 10

Answer 1

Date	Accounts	Debit	Credit
May 15	Cash (180000*12)	2160000
	Common stock (180000*3)		540000
	Paid in capital in excess of stated value - Common stock		1620000
June 30	Cash (30000*85)	2550000
	Preferred stock (30000*80)		2400000
	Paid in capital in excess of par - Preferred stock		150000