Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Grouper Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

Feb. 1 Issued 41,600 shares for cash at $105 per share.
July 1 Issued 123,000 shares for cash at $58 per share.

Required:
Journalize the transactions.

Sagot :

abiolataiwo2015

Answer:

Feb-01

Dr Cash $4,368,000

Cr Prefered stock $2,080,000

Cr Paid-in capital in excess of par value-Preferred $2,288,000

Jul-01

Dr Cash $7,134,000

Cr Prefered stock $6,150,000

Cr Paid-in capital in excess of par value-Prefered $984,000

Explanation:

Preparation of the journal entries

Feb-01

Dr Cash(41,600 shares*$105) $4,368,000

Cr Prefered stock(41,600 shares*$50) $2,080,000

Cr Paid-in capital in excess of par value-Preferred $2,288,000

($4,368,000-$2,080,000)

Jul-01

Dr Cash(123,000 shares*$58) $7,134,000

Cr Prefered stock(123,000 sahres*$50) $6,150,000

Cr Paid-in capital in excess of par value-Prefered $984,000

($7,134,000-$6,150,000)

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.