Question

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 74,600 shares of $10 par common stock at $12, and on November 19, it issued for cash 15,640 shares of preferred stock, $40 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?

Answer 1

1
	Date	Description	Post Ref.	Debit	Credit	Assets	Liabilities	Equity
	Oct 31	Cash (74,600 x $12)		$895,200		↑
		Common Stock (74,600 x $10)	311		$746,000			↑
		Paid-In Capital in Excess of Par-Common Stock	312		$149,200			↑
	Nov 19	Cash (15,640 x $56)		$875,840		↑
		Preferred Stock (15,640 x $16)	321		$625,600			↑
		Paid-In Capital in Excess of Par-Preferred Stock	322		$250,240			↑
2	Amount invested (total paid-in capital)		$1,771,040