Problem
On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 729,000 shares of no-par common stock.
The stock outstanding when a corporation has issued only one class of stock.
(with a stated value of $1.40) at $3.70, and on June 30, it issued for cash 22,500 shares of preferred stock
A class of stock with preferential rights over common stock.
$50 par
The monetary amount printed on a stock certificate.
at $61.
Required:
A. Journalize the entries for May 15 and June 30, assuming that the common stock is to be credited with the stated value. 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 June 30?