(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions (a) Prepare the journal entry for the issuance when the market value of the common shares is $95 each and market value of the preferred is $60 each. (b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share.

(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions (a) Prepare the journal entry for the issuance when the market value of the common shares is $95 each and market value of the preferred is $60 each. (b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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