Question

Culver Corporation is authorized to issue both preferred and common stock. The par value of the preferred is SSO. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock Feb. 1 Issued 50,500 shares for cash at $54 per share. July 1 Issued 68,500 shares for cash at $58 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 for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

Solution 1:

Journal Entries - Culver Corporation
Date	Particulars	Debit	Credit
1-Feb	Cash Dr	$2,727,000.00
	To Preferred stock		$2,525,000.00
	To Paid in capital in excess of par value - Preferred stock		$202,000.00
	(To record issue of preferred stock)
1-Jul	Cash Dr	$3,973,000.00
	To Preferred stock		$3,425,000.00
	To Paid in capital in excess of par value - Preferred stock		$548,000.00
	(To record issue of preferred stock)

Solution 2:

Preferrred Stock
Date	Debit	Date	Credit
		1-Feb	$2,525,000.00
		1-Jul	$3,425,000.00
		Bal.	$5,950,000.00

Paid in capital in excess of par value - Preferrred Stock
Date	Debit	Date	Credit
		1-Feb	$202,000.00
		1-Jul	$548,000.00
		Bal.	$750,000.00