Entries for Issuing No-Par Stock On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 1,000,000 shares of no-par common stock (with a stated value of $0.25) at $1.20, and on August 3, it issued for cash 10,000 shares of preferred stock, $15 par at $21. 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 Aug. 3 b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3?
Entries for Issuing No-Par Stock On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 1,000,000 shares of no-par common stock (with a stated value of $0.25) at $1.20, and on August 3, it issued for cash 10,000 shares of preferred stock, $15 par at $21. 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 Aug. 3 b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Entries for Issuing No-Par Stock
On February 12, Quality Carpet Inc., a carpet wholesaler, issued for
cash 1,000,000 shares of no-par common stock (with a stated value
of $0.25) at $1.20, and on August 3, it issued for cash 10,000
shares of preferred stock, $15 par at $21.
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
Aug. 3
b. What is the total amount invested (total paid-in capital) by all
stockholders as of August 3?
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