SHATT ALAREB CO. issues 1000 shares of $5 par value common stock and 500 shares of $50 par value preferred stock for a lump sum of $50,000. Instructions a. Prepare the journal entry for the issuance when the market price of the common shares is $65 each and market price of the preferred is $120 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $85 per share.

SHATT ALAREB CO. issues 1000 shares of $5 par value common stock and 500 shares of $50 par value preferred stock for a lump sum of $50,000. Instructions a. Prepare the journal entry for the issuance when the market price of the common shares is $65 each and market price of the preferred is $120 each. (Round to nearest dollar.) b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $85 per share.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter15: Shareholders’ Equity: Capital Contributions And Distributions

Section: Chapter Questions

Problem 15E

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