Accounting, Chapters 14-26
27th Edition
ISBN: 9781337514095
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 13, Problem 13.3EX
(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.
To
(b)
To determine
The total paid in capital as of November 19.
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Entries for issuing par stockOn October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at 518, and on November 19, it issued for cash 50,000 shares of preferred stock, $75 par at $80.a. Journalize the entries for October 31 and November 19.b. What is the total amount invested (total paid-in capital) by all stockholders as of November 19?
On October 31, Pidgeon Stones Inc., a marble contractor, issued for cash 70,300 shares of $10 par common stock at $15, and on November 19, it issued for cash 18,450 shares of preferred stock, $45 par at $56.
Required:
a.
Journalize the entries for October 31 and November 19.
b.
What is the total amount invested (total paid-in capital) by all stockholders as of November 19?
Instructions
On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 72,900 shares of $10 par common stock at $14, and on
November 19, it issued for cash 20,640 shares of preferred stock, $50 par at $52.
Required:
A. Journalize the entries for October 31 and November 19. Refer to the Chart of Accounts for exact wording of account titles.
B. What is the total amount invested (total paid-in capital) by all stockholders as of November 19?
Journal
JOURNAL
DESCRIPTION
POST. REF.
DEBIT
CREDIT
DATE
Chapter 13 Solutions
Accounting, Chapters 14-26
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