Entries for Issuing Par Stock

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 400,000 shares of $10 par common stock at $18, and on November 19, it issued for cash 50,000 shares of preferred stock, $75 par at $80.

a. Journalize the entries for October 31 and November 19.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Prepare the Stockholders Equity section of the balance sheet as of June 30 using Method 1 of

Exhibit 8

. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired. Refer to the lists of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign.