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EX 13-3 Entries for issuing par stock On January 14, Mountain Rocks Inc
EX 13-3 Entries for issuing par stock
On January 14, Mountain Rocks Inc., a marble contractor, issued for cash 24,000 shares of $25 par common stock at $32, and on March 17, it issued for cash 60,000 shares of $10 par preferred stock at $11. What is the total amount invested (total paid-in capital) by all stockholders as of March 17?
Expert Solution
| Journal Entries: | |||
| Date | Accounts Titles and Explanation | Debit | Credit |
| 14-Jan | Cash (24,000 shares*$32) | $768,000 | |
| Common Stock (24,000 shares*$25) | 600000 | ||
| Paid in Capital in Excess of Par | $168,000 | ||
| (Being entry made to record the issuance of common stock) | |||
| 17-Mar | Cash (60,000 shares*$11) | $660,000 | |
| Preferred Stock (60,000 shares*$10) | 600000 | ||
| Paid in Capital in Excess of Par | $60,000 | ||
| (Being entry made to record the issuance of preferred stock) | |||
Total amount invested (total paid-in capital) by all stockholders as of March 17 = $600,000+$600,000+$168,000+$60,000 = $1,428,000.
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