On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 265,000 shares of no-par...

 

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On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 265,000 shares of no-par common stock (with a stated value of $4) at $12, and on August 3, it issued for cash 15,000 shares of $85 par preferred stock at $92. a. Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 12 Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Aug. 3 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback Check My Work Recall that a separate account is used for recording the amount of each class of stock issued to investors in a corporation. Recall the definition of legal capital and what affect that has on recording the sale of stock. b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3? On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 265,000 shares of no-par common stock (with a stated value of $4) at $12, and on August 3, it issued for cash 15,000 shares of $85 par preferred stock at $92. a. Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 12 Cash Common Stock Paid-In Capital in Excess of Stated Value-Common Stock Aug. 3 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Feedback Check My Work Recall that a separate account is used for recording the amount of each class of stock issued to investors in a corporation. Recall the definition of legal capital and what affect that has on recording the sale of stock. b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3?