Question

1. On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5.000 shares of $50 par preferred stock were issued at $104. Journalize the entries for April 1 and 7.

Answer 1

(1) Journal entries. April ist Cash (10,000 x 22) 220,000 Common stock AG (19000*3)*** Soap Additional paid in Capital AE (900x17) 1,70,000. - April 9th Cash (5000x lou) 5,29,000 Preferred stocha (spoo* so). Additional paid in capital (spoux su). 2500 270,000; 2 April 10th 275,000 Cash (11,000 25) Common stock Cash (1000x90) us preferred stock 275,000 for Soon 59000 its Cashi Isowx 55) 8,25,000 47 preferred stock. (15.curso) Additional paid in Capital Ala (15.00x5) 7,50 000 75,000. Generally preterence duidend to be distributed - 200 x 100 x 2% 2 60,000 for evely 1 prekreace shale $2 is to be given as dividend Weg$10,000 $10,000 B to be given to prebience shakeholders ach a 0.58 for every preference shale 10,000 $ 200 pel sh

el I preference dividend to be required a 40,000 bet available was $10,000 dudend So so as no need to no need to given to common stock holers yeart It $ 45,00 shareholders - first copood is to be given to preference for 2$ for evely preference shores Remaining (u5,000-40,000) = spool is to be given to 1,00,000 sholes Swo 20.05$ for every common stock shole. forst uogoo $ is to be given to preference shareholders for 2$ for every preference share. Remaining (90,000 - 40,000) = Sqooo$ is to be given to 100,ooo shales soooo .0.5$ for every equity shale. 100poo Shakes o $50,000 Evideds Au $ soooo Gsh ne
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