On July 7, Sloth Inc., a marble contractor, issued for cash 40,000 shares of $25 par common

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 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?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...