Question

1. Prepare the journal entry to record Tamas Company's issuance of 5,800 shares of $100 par value, 6% cumulative preferred stock to $104 cash per share. View transaction list Journal entry worksheet Record the issue of $100 par value preferred stock for $104 cash Note: Enter debits before credits Debit General Journal Transaction Credit Preferred to $100 per value PB - Captax es Of Blue Dreferred Hoody -- - Prey 7 of 11 Next >

Answer 1

1)

Transaction	General Journal	Debit	Credit
1	Cash A/c Dr	$5,71,200
	To Preferred Stock ($100 - Par Value)		$5,60,000
	To Paid-in Capital in excess of Par Value , preferred Stock		$11,200

2)

Par Value Per Preferred Share	Dividend Rate	Dividend per Preferred Share	Number of Preferred Shares	Preferred Dividend
$100	8%	$8 (100*8%)	5,600	$44,800(5,600*$8)