Question

alculator Entries for Issuing No-Par Stock On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 310,000 shares of no par common stock with a stated value of 83) at $12, and on August 3, it issued for cash 25,000 shares of $70 par preferred stock at $73. a. Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 12 Cash Common Stock Paid In Capital in Excess of Stated Value-Common Stock 111 III 000 000 Aug. 3 Cash ✓ Preferred Stock Paid In Capital in Excess of Par-Preferred Stock Feedback Check My Work Recall that a separate account is used for recording the amount of each class of stock issued to investors in a corporation Recall the definition of legal capital and what affect that has on recording the sale of stock. Previous Next

Answer 1

Feb. 12	Cash (310,000 x $12)	3,720,000
	Common stock (310,000 x $3)		930,000
	Paid in capital in excess of stated value - Common stock		2,790,000
Aug. 3	Cash (25,000 x $73)	1,825,000
	Preferred stock (25,000 x $70)		1,750,000
	Paid in capital in excess of par - Preferred stock		75,000