Question

11. Thurman Comfort Specialists, Inc. reported the following stockholders' equity on its balance sheet at June 30, 2018: (Click the icon to view the partial balance sheet.) Read the requirements Requirement 1. Identify the different classes of stock that Thurman Comfort Specialists has outstanding. Thurman has preferred stock and common stock outstanding. Requirement 2. What is the par value per share of Thurman Comfort Specialists' preferred stock? The par value of preferred stock is $ 5 per share. Requirement 3. Make two summary journal entries to record issuance of all the Thurman Comfort Specialists' stock for cash. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal Begin by recording the issuance of the preferred stock. Date Accounts Debit Credit (2) Next, record the issuance of the common stock. Date Accounts Debit Credit

Answer 1

Credit - Accounts Cash 8% Preferred stock (Being Preferred Stock ilued) Sebut 12D0DDO 1200000 Cash 38,10.000 Common stock Premium on June (Retaried RAS) Being Common Stock isund) 13.10.DON 2500000 73016/8 10000D Preferred stock 1000DD Common Stock Dividend Parable - Preferred stock 100ooo Dividend Payable - common stock 1000oD (Being Liability Recognised) [Assumed Div. of 100000 declared for Each chass] Dividend Payable-Preferred stack 100000 Dividend payable - Commen stock 100000 200000 Cash I Note : 2017/18 (Benig Dividend paid)