Question

Exercise 11-06 a-b Pina Colada 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 49,000 shares for cash at $54 per share. July 1 Issued 65,000 shares for cash at $57 per share. Your answer is correct. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Feb. 1 Cash 2646000 T Preferred Stock 2450000 Paid-in Capital in Excess of Par Value-Preferred St 196000 July 1 || Cash Cash 3705000 Preferred Stock 3250000 Paid-in Capital in Excess of Par Value-Preferred St 455000

Answer 1

Preferred Stock
			Feb-01	$24,50,000
			Jul-01	$32,50,000
			Bal	$57,00,000
Paid-in capital in excess of par value-Prefered
			Feb-01	$1,96,000
			Jul-01	$4,55,000
			Bal	$6,51,000