On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 160,000 shares of no-par common stock (with a stated value of $5) at $15, and on June 30, it issued for cash 25,000 shares of preferred stock, $90 par at $97. 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 Value-Common Stock June 30 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback 0 0 0 0 b. What is the total amount invested (total paid-in capital) by all stockholders as of June 30? 3,225,000 X 0 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.
On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 160,000 shares of no-par common stock (with a stated value of $5) at $15, and on June 30, it issued for cash 25,000 shares of preferred stock, $90 par at $97. 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 Value-Common Stock June 30 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback 0 0 0 0 b. What is the total amount invested (total paid-in capital) by all stockholders as of June 30? 3,225,000 X 0 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.
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 May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 160,000 shares of no-par common stock (with a stated value of
$5) at $15, and on June 30, it issued for cash 25,000 shares of preferred stock, $90 par at $97.
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 Value-Common Stock
June 30 Cash
Preferred Stock
✓
Paid-In Capital in Excess of Par-Preferred Stock
Feedback
0
0
0
0
b. What is the total amount invested (total paid-in capital) by all stockholders as of June 30?
3,225,000 X
0
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.
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