Question

PLEASE USE THE CHART PROVIDED

On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 70,300 shares of $45 par common stock at $56, and on February 27, it issued for cash 18,450 shares of preferred stock, $10 par at $15.

a. Journalize the entries for January 22 and February 27. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

b. What is the total amount invested (total paid-in capital) by all stockholders as of February 27?

Answer 1

a.

Date	Account Titles	Debit	Credit	Assets	Liabilities	Equity
22-Jan	Cash	$    3,936,800		I
	Common Stock		$    3,163,500			I
	Paid in Capital in excess of par-common		$        773,300			I
27-Feb	Cash	$        276,750		I
	Preferred Stock		$        184,500			I
	Paid in Capital in excess of par-preferred		$          92,250			I

b.
Total Amount invested = $4,213,550