Respuesta :
Answer:
April 1: Debit Cash - 286,000; Credit Common stock 66,000 and PICIEP 220,000
April 7: Debit Cash - 324,000 Credit Preferred Stock 180,000 and PICIEP 144,000
Explanation:
The question is to journalize the issue of shares both Common Stock on April 1 and Preferred Stock on April 7
April 1: Common Stock Issue
Cash = 11,000 shares x $26 = $286,000
Common Stock = 11,000 shares x $6 = $66,000
Paid in Capital in Excess of Par = $286,000 - $66,000 = $220,000
Journal Entries are as follows
Date Description Debit Credit
April 1 Cash 286,000
Common Stock 66,000
PICIEP 220,000
April 7: Preferred Stock Issue
Cash = 3,000 shares x $108 = $324,000
Preferred Stock = 3,000 shares x $60 = $180,000
Paid in Capital in Excess of Par = $324,000- $180,000= $144,000
Journal Entries are as follows
Date Description Debit Credit
April 7 Cash 324,000
Peferred Stock 180,000
PICIEP 144,000
Answer:
The journal entries to record issue of common stock are as follows:
Dr Cash $286,000
Cr Common stock($6*11000) $66000
Cr Capital paid-in excess of par value($20*11000) $220,000
Being issue of common stock at $26 per share
The journal entries for the issue of preferred stock are :
Dr Cash $324,000
Cr Preferred Stock ($60*3000) $180,000
Cr Capital paid-in excess of par value($108-$60)*3000 $144,000
Being issue of preferred stock at $108 per share
Explanation:
Upon issuance of common stock, cash proceeds of $286000 ($26*11000) were realized which signals an increase in cash of the same amount, the journal entries for that issue is as follows:
Dr Cash $286,000
Cr Common stock($6*11000) $66000
Cr Capital paid-in excess of par value($26-$20)*11000 $220,000
However, cash proceeds realized from issue of preferred stock is $324000 ($108*3000) and the necessary journal entries are as follows:
Dr Cash $324,000
Cr Preferred Stock ($60*3000) $180,000
Cr Capital paid-in excess of par value($108-$60)*3000 $144,000
