Question

Exercise 11-06 a-b Whispering Winds 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 51,000 shares for cash at $52 per share. July 1 Issued 68,000 shares for cash at $57 per share. 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

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Feb-01	Cash(51,000 shares*$52)		26,52,000
		Prefered stock(51000 sahres*$50)			25,50,000
		Paid-in capital in excess of par value-Prefered			1,02,000
	Jul-01	Cash(68,000 shares*$57)		38,76,000
		Prefered stock(68000 sahres*$50)			34,00,000
		Paid-in capital in excess of par value-Prefered			4,76,000
Preferred Stock
				Beg Balance	$0
			Feb-01	By Cash	$25,50,000
			Jul-01	By Cash	$34,00,000
	Closing balance	$59,50,000
Paid-in capital in excess of par value-Prefered
				Beg Balance	$0
			Feb-01	By Cash	$1,02,000
			Jul-01	By Cash	$4,76,000
	Closing balance	$5,78,000