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Problem 1: Issuing par stock
On January 29, Quality Marble Inc., a marble contractor, issued for cash 75,000 shares of $10 par common stock at $23, and on May 31, it issued for cash 100,000 shares of $4 par preferred stock at $6.
a. Illustrate the effects on the accounts and financial statements of the January 29 and May 31 transactions.
b. What is the total amount invested (total paid-in capital) by all stockholders as of May 31?
Problem 2:
The dates of importance in connection with a cash dividend declared and paid of $55,350 on a corporation's common stock are February 6, March 9, and April 8. Illustrate the effects on the accounts and financial statements for each date.
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