Question -
On April 20, Gallatin County Rocks Inc., a marble contractor, issued for cash 75,000 shares of $45 par common stock at $54, and on August 7, it issued for cash 20,000 shares of preferred stock, $10 par at $12.
A. Journalize the entries for April 20 and August 7. 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 August 7?
CHART OF ACCOUNTS - Gallatin County Rocks Inc.
ASSETS
- 110Cash
- 120Accounts Receivable
- 131Notes Receivable
- 132Interest Receivable
- 141Merchandise Inventory
- 145Office Supplies
- 151Prepaid Insurance
- 181Land
- 193Equipment
- 194Accumulated Depreciation-Equipment
LIABILITIES
- 210Accounts Payable
- 221Notes Payable
- 226Interest Payable
- 231Cash Dividends Payable
- 236Stock Dividends Distributable
- 241Salaries Payable
- 261Mortgage Note Payable
EQUITY
- 311Common Stock
- 312Paid-In Capital in Excess of Par-Common Stock
- 315Treasury Stock
- 321Preferred Stock
- 322Paid-In Capital in Excess of Par-Preferred Stock
- 331Paid-In Capital from Sale of Treasury Stock
- 340Retained Earnings
- 351Cash Dividends
- 352Stock Dividends
- 390Income Summary
REVENUE
- 410Sales
- 610Interest Revenue
EXPENSES
- 510Cost of Merchandise Sold
- 515Credit Card Expense
- 520Salaries Expense
- 531Advertising Expense
- 532Delivery Expense
- 533Selling Expenses
- 534Rent Expense
- 535Insurance Expense
- 536Office Supplies Expense
- 537Organizational Expenses
- 562Depreciation Expense-Equipment
- 590Miscellaneous Expense
- 710Interest Expense