Instructions On April 20 Gallatin County Rocks Inc a marble

Instructions On April 20, Gallatin County Rocks Inc., a marble contractor, issued for cash 75,000 shares of S45 par common stock at $54, and on August 7, it issued for cash 20,000 shares of preferred stock, $10 par at $12. Required: A. Journalize the entries for April 20 and August 7. 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 August 7?

Solution

a Cash 4050000 =75000*54      Common Stock 3375000 =75000*45       Paid in capital in excess of par-Common Stock 675000 b Cash 240000 =20000*12      Preferred Stock 200000 =20000*10       Paid in capital in excess of par-Preferred Stock 40000 b Total paid in capital = 4050000+240000= 4290000