On July 7, Sloth Inc., a marble contractor, issued for cash 40,000 shares of $25 par common stock at $40, and on October 20, it issued for cash 15,000 shares of $100 par preferred stock at $120.
a. Journalize the entries for July 7 and October 20.
b. What is the total amount invested (total paid-in capital) by all stockholders as of October 20?
On February 20, Mudguard Corp., a carpet wholesaler, issued for cash 100,000 shares of no-par common stock (with a stated value of $10) at $15, and on April 30, it issued for cash 4,000 shares of $25 par preferred stock at $30.
a. Journalize the entries for February 20 and April 30, assuming that the common stock is to be credited with the stated value.
b. What is the total amount invested (total paid-in capital) by all stockholders as of April 30?