Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 1,000 shares have been reacquired.

Common Stock, $40 par	$3,200,000
Paid-In Capital from Sale of Treasury Stock	64,000
Paid-In Capital in Excess of ParCommon Stock	720,000
Retained Earnings	1,568,000
Treasury Stock	29,000

Stockholders' Equity
Paid-In Capital:
Common Stock, $40 Par	$
Excess over par
Paid-in capital, common stock		$
Treasury Stock
Total Paid-in Capital		$
Total		$
Total Stockholders' Equity		$

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 77,000 shares of $10 par common stock at $11, and on November 19, it issued for cash 17,040 shares of preferred stock, $50 par at $53.

Required:

A.	Journalize the entries for October 31 and November 19. Refer to the Chart of Accounts for exact wording of account titles.
B.	What is the total amount invested (total paid-in capital) by all stockholders as of November 19?

CHART OF ACCOUNTS

Legacy Rocks Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
131	Notes Receivable
132	Interest Receivable
141	Merchandise Inventory
145	Office Supplies
151	Prepaid Insurance
181	Land
193	Equipment
194	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
221	Notes Payable
226	Interest Payable
231	Cash Dividends Payable
236	Stock Dividends Distributable
241	Salaries Payable
261	Mortgage Note Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

The declaration, record, and payment dates in connection with a cash dividend of $108,000 on a corporations common stock are January 12, March 13, and April 12.

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

EXHIBIT 8 Stockholders' Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 20Y7 Stockholders' Equity Paid-in capital Preferred 10% stock, $50 par (2,000 shares authorized and 110,000 Common stock, $20 par (50,000 shares authorized, Method 1 1,090,000 2,000 1,202,000 350,000 1,552,000 (27,000) $1,525,000 Total . .. Stockholders' Equity Contributed capital Preferred 10% stock, $50 par (2,000 shares authorized and 5 100,000 Common stock, $20 par (50,000 shares authorized 900,000 202,000 Method 2 1,202,000 350,000 1,552,000 (27000 1,525,000