Question

Exercise 13-09 a-b (Part Level Submission) (Video) Ayayai Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $48. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 18,000 shares for cash at $55 per share. July 1 Issued 10,000 shares for cash at $59 per share. (a) 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.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Answer 1

Date	Account	Debit	Credit
Feb 1	Cash (18,000*55)	990,000
	Preferred stock (18,000*48)		864,000
	Paid in capital in excess of par, preferred stock		126,000
July 1	Cash (10,000*59)	590,000
	Preferred stock (10,000*48)		480,000
	Paid in capital in excess of par, preferred stock		110,000