Entries for Issuing No-Par Stock On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 225,000 shares of no-par common stock (with a stated value of $4) at $12, and on August 3, it issued for cash 30,000 shares of preferred stock, $70 par at $77. a. Journalize the entries for February 12 and August 3, assuming that the common stock is to be credited with the stated value. If an amount box does not require an entry, leave it blank. Feb. 12 fill in the blank b61f68033ffb003_2 fill in the blank b61f68033ffb003_3 fill in the blank b61f68033ffb003_5 fill in the blank b61f68033ffb003_6 fill in the blank b61f68033ffb003_8 fill in the blank b61f68033ffb003_9 Aug. 3 fill in the blank b61f68033ffb003_11 fill in the blank b61f68033ffb003_12 fill in the blank b61f68033ffb003_14 fill in the blank b61f68033ffb003_15 fill in the blank b61f68033ffb003_17 fill in the blank b61f68033ffb003_18 b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3? $fill in the blank 1de58807bfa0fbb_1
Entries for Issuing No-Par Stock
On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 225,000 shares of no-par common stock (with a stated value of $4) at $12, and on August 3, it issued for cash 30,000 shares of
a.
| Feb. 12 | fill in the blank b61f68033ffb003_2 | fill in the blank b61f68033ffb003_3 | |
| fill in the blank b61f68033ffb003_5 | fill in the blank b61f68033ffb003_6 | ||
| fill in the blank b61f68033ffb003_8 | fill in the blank b61f68033ffb003_9 | ||
| Aug. 3 | fill in the blank b61f68033ffb003_11 | fill in the blank b61f68033ffb003_12 | |
| fill in the blank b61f68033ffb003_14 | fill in the blank b61f68033ffb003_15 | ||
| fill in the blank b61f68033ffb003_17 | fill in the blank b61f68033ffb003_18 |
b. What is the total amount invested (total paid-in capital) by all stockholders as of August 3?
$fill in the blank 1de58807bfa0fbb_1
Common stock: These are the shares issued by a company to an outsider. These shares entitle a share of ownership to the person acquired them. The holders of these shares will have voting powers and can elect the board of directors. In the event of liquidation, the holders of these shares will get a right on corporation's assets only after the preferred debts were paid off.
Preferred stock: These are the shares which has a preference over common stock holders in the dividend payment at a fixed rate every year and also in the payment of proceeds in the event of liquidation. The preferred stock can be cumulative or non-cumulative. Cumulative preferred stock is a type of stock where in the dividends if not paid for a particular year will accumulate as arrears and need to be paid in the future years where as no dividend accumulate in case of non-cumulative preferred stock
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