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Question: reporting stockholders equity using the following accounts and balances prepare...

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EXHIBIT 8 Stockholders Equity Section of a Balance Sheet Telex Inc. Balance Sheet December 31, 20Y7 Stockholders Equity Paid-in capital Preferred 10% stock, $50 par (2,000 shares authorized and 110,000 Common stock, $20 par (50,000 shares authorized, Method 1 1,090,000 2,000 1,202,000 350,000 1,552,000 (27,000) $1,525,000 Total . .. Stockholders Equity Contributed capital Preferred 10% stock, $50 par (2,000 shares authorized and 5 100,000 Common stock, $20 par (50,000 shares authorized 900,000 202,000 Method 2 1,202,000 350,000 1,552,000 (27000 1,525,000Reporting Stockholders' Equity

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet using Method 1 of Exhibit 8. 100,000 shares of common stock authorized, and 1,000 shares have been reacquired.

Common Stock, $40 par $3,200,000
Paid-In Capital from Sale of Treasury Stock 64,000
Paid-In Capital in Excess of Par—Common Stock 720,000
Retained Earnings 1,568,000
Treasury Stock 29,000
Stockholders' Equity
Paid-In Capital:
Common Stock, $40 Par $
Excess over par
Paid-in capital, common stock $
Treasury Stock
Total Paid-in Capital $
Total $
Total Stockholders' Equity $

On October 31, Legacy Rocks Inc., a marble contractor, issued for cash 77,000 shares of $10 par common stock at $11, and on November 19, it issued for cash 17,040 shares of preferred stock, $50 par at $53.

Required:

A. Journalize the entries for October 31 and November 19. 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 November 19?
CHART OF ACCOUNTS
Legacy Rocks Inc.
General Ledger
ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Merchandise Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
193 Equipment
194 Accumulated Depreciation-Equipment
LIABILITIES
210 Accounts Payable
221 Notes Payable
226 Interest Payable
231 Cash Dividends Payable
236 Stock Dividends Distributable
241 Salaries Payable
261 Mortgage Note Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary

The declaration, record, and payment dates in connection with a cash dividend of $108,000 on a corporation’s common stock are January 12, March 13, and April 12.

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

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