On February 12, many milk Inc., a cow wholesaler, issued for cash 770,000 shares of no-par common stock (with a stated value of $1.40) at $3.60, and on August 3, it issued for cash 15,700 shares of preferred stock, $45 par at $60.

a.

Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

b

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

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