Reference no: EM131589905

Question -

On April 20, Gallatin County Rocks Inc., a marble contractor, issued for cash 75,000 shares of $45 par common stock at $54, and on August 7, it issued for cash 20,000 shares of preferred stock, $10 par at $12.

A. Journalize the entries for April 20 and August 7. 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 August 7?

CHART OF ACCOUNTS - Gallatin County Rocks Inc.

ASSETS

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

LIABILITIES

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

EQUITY

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

REVENUE

• 410Sales
• 610Interest Revenue

EXPENSES

• 510Cost of Merchandise Sold
• 515Credit Card Expense
• 520Salaries Expense
• 531Advertising Expense
• 532Delivery Expense
• 533Selling Expenses
• 534Rent Expense
• 535Insurance Expense
• 536Office Supplies Expense
• 537Organizational Expenses
• 562Depreciation Expense-Equipment
• 590Miscellaneous Expense
• 710Interest Expense