Answer Happy

Entries for issuing no-par stock On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 300,000 shares of no-par common stock (with a stated value of $5) at $20, and on June 30, it issued for cash 25,000 shares of preferred stock, $80 par at $85. a. Journalize the entries for May 15 and June 30, 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. Date May 15 Cash Account Common Stock Paid-In Capital in Excess of Stated Value-Common Stock June 30 Cash Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock Debit Credit b. What is the total amount invested (total paid-in capital) by all stockholders as of June 30?
Treasury stock transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake reacquired 5,900 shares of its common stock at $84 per share. On September 22, Mystic Lake sold 4,100 of the reacquired shares at $93 per share. The remaining 1,800 shares were sold at $81 per share on November 23. a. Journalize the transactions of July 9, September 22, and November 23. If an amount box does not require an entry, leave it blank. Account Debit Credit Date July 9 Treasury Stock Nov. 23 Cash Sept. 22 Cash Treasury Stock Paid-In Capital from Sale of Treasury Stock Cash Paid-In Capital from Sale of Treasury Stock Treasury Stock b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? DEBIT OR CREDIT? c. For what reasons might Mystic Lake Inc. have purchased the treasury stock? CHOOSE ONE ANSWER FROM BELOW To support the market price of the stock. To provide shares for resale to employees. For reissuance to employees as a bonus according to stock purchase agreements. None of these reasons. All of these reasons.