Question

Cheyenne Corporation issued 305 shares of $10 par value common stock and 134 shares of $50 par value preferred stock for a lump sum of $16,344. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.

Prepare the journal entry to record the issuance. (Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g., 1,520. 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Answer 1

Accounts	debit	credit
Cash	$        16,344
Preferred stock		$        6,700
134*50
Additional paid in capital preferred		$        4,154
10854-6700
Common stock		$        3,050
305*10
Additional paid in capital Common		$        2,440
5490-3050

working

	Number	Market value	total	percent	lumpsum	Allocation
common	305	20	6100	34%	16344	5490
preferred	134	90	12060	66%	16344	10854
			18160			16344