Question: 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

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?

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