On February 25, Madison County Rocks Inc., a marble contractor, issued for cash 120,000 shares of $36

Question:

On February 25, Madison County Rocks Inc., a marble contractor, issued for cash 120,000 shares of $36 par common stock at $40, and on June 3, it issued for cash 50,000 shares of preferred stock, $8 par at $9.

a. Journalize the entries for February 25 and June 3.

b. What is the total amount invested (total paid-in capital) by all stockholders as of June 3?

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...