Answered: a. Journalize the entries for April 20…

a. Journalize the entries for April 20 and August 7. b. What is the total amount invested (total paid-in capital) by all stockholders as of August 7?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 4MC: Stock subscriptions receivable are listed as __________ on the balance sheet. (a) current...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

a. Journalize the entries for April 20 and August 7.
b. What is the total amount invested (total paid-in capital) by all stockholders as of August 7?

Expert Solution

Step 1

Requirement a:

Pass a journal entry to record the issuance of common stock.

Step 2

Pass a journal entry to record the issuance of preferred stock.

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