a. Journalize the entries for February 25 and June 3.
b. What is the total amount invested (total paid-in capital) by all stockholders as of June 3?
Answer:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9Sdtob6Ejp-h_BkE9gMrXyLC5XY5cAhOHVgeKKk2xOO2TALKZRG0DsoMMj19Ap1JNK3gIH-ZIBpMXdISVl_P3aKeS3fj4QIYvPlVIfsL0knr1893rJTh9cOSIKXoQPNHPQ4DMWAyt7asg/s400/Ex.+13%25E2%2580%25933.png)
a.
Feb. 25 Cash (120,000 shares × $40) 4,800,000
Common Stock (120,000 shares × $36) 4,320,000
Paid-In Capital in Excess of Par—
Common Stock [120,000 shares × ($40 – $36)] 480,000
June 3 Cash (50,000 shares × $9) 450,000
Preferred Stock (50,000 shares × $8) 400,000
Paid-In Capital in Excess of Par—
Preferred Stock [50,000 shares × ($9 – $8)] 50,000
b. $5,250,000 ($4,800,000 + $450,000)
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