abc has issued 3,000 shares of common stock and 400 shares of preferred stock for a lump sum of $80,000 cash.   Instructions       Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $32, and the par value of the preferred stock was $20 and the fair value $50.     Give the entry for tike issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $22 per share.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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abc has issued 3,000 shares of common stock and 400 shares of preferred stock for a lump sum of $80,000 cash.

 

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    Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $32, and the par value of the preferred stock was $20 and the fair value $50.

    Give the entry for tike issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $22 per share.

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