On June 4, Magic Carpet Inc., a carpet wholesaler, issued for cash 250,000 shares of no-par common

Question:

On June 4, Magic Carpet Inc., a carpet wholesaler, issued for cash 250,000 shares of no-par (with a stated value of $3) at $12, and on October 9, it issued for cash 25,000 shares of $75 par preferred stock at $80.
(a) Journalize the entries for June 4 and October 9, assuming that the is to be credited with the stated value.
(b) What is the total amount invested (total paid-in capital) by all stockholders as of October 9?

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...