Question

ntries for Issuing No-Par Stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 285,000 shares of no-par common stock (with a stated value of $4) at $16, and on June 30, it issued for cash 30,000 shares of preferred stock, $85 par at $91. 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 b. What is the total amount invested (total paid-in capital) by all stockholders as of June 30?

Answer 1

a) Journal Entries:

Date	Accounts title and explanation	Debit	credit
May-15	Cash	$ 4,560,000.00
	Common stock		$1,140,000.00
	Paid in capital in excess of stated value-Common stock		$3,420,000.00
	(To record issue of stock)
Jun-30	Cash	$2,730,000.00
	Preferred stock		$2,550,000.00
	Paid in capital in excess of par value-Preferred stock		$180,000.00
	(To record issue of stock)

b)

Amount of total paid in capital by all stockholders (2730,000+4,560,000)

7,290,000