Chapter 12, Problem 12.4EX

A.

To determine

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

To Journalize: The entries for May 15 and June 30.

(B)

To determine

The total paid in capital as of June 30.