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On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share.

Respuesta :

Answer:

Explanation:

The journal entry to record the issuance of common stock is shown below:

Cash A/c Dr $10,000         ($10 shares × $1,000)

    To Preferred  Stock $1,000          (10 shares × $100)

    To  Additional Paid-in Capital in excess of par - Preferred Stock $9,000

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

While issuing the stock, we debited the cash account and credited the preferred stock and additional paid-in capital account

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