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The Stone Store Inc., a granite contractor, began operations on January 1 and issued 75,000 shares of $20 par Common stock for cash at $20

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The Stone Store Inc., a granite contractor, began operations on January 1 and issued 75,000 shares of $20 par Common stock for cash at $20 per share. On May 31 , it issued an additional 200,000 shares of $20 par common stock for cash at $46 per share. a. Ihustrate the effects on the accounts and financial statements of the lanuary 1 transaction. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Iilustrate the effects on the accounts and financial statements ofalanpe, Sbeftansaction. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. b. What is the total amount invested (total paid-in copital) by the stockhoiders as of May 31 ? Illustrate the effects on the accounts and financial statements difhengg,Sbegtansaction. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box btank. Enter account decreases and cash outflows as negative amounts. b. What is the total amount invested (total paid-in capital) by the stockholders as of May 31 ? Feedbork Theak My Wonk a. The issuance of the stock increases Cash by sales price times number of share joth common and Preferred stock. The stock acceunts are increased for the par amount, and the odditional paid-in capital accounts are increased for the respective amounts over par for each of the stock types. b. Remember the accounting equation, if assets increase in the form of cash, then the stockholders will increase by an equal amount

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