Question

1. Prepare the journal entry to record Tamas Company's issuance of 5,800 shares of $100 per value, 6% cumulative preferred stock for $104 cash per share. View transaction list Journal entry worksheet Record the issue of $100 par value prefer Note: Enter debts before credits Rody

Answer 1

Answer

• Requirement 1

Transaction	General Journal	Debit	Credit
1	Cash [5800 shares x $ 104]	$603,200
	Preferred Stock $ 100 par [5800 x 100]		$580,000
	Paid in Capital in excess of Par - Preferred Stock		$23,200
	(to record preferred stock issuance)

• Requirement 2

	Par Value per Preferred Share	Dividend rate	Dividend per Preferred Share	No. of Preferred Shares	Preferred Dividend
Annual Preferred Dividend:	$                        100	6.00%	$                   6.000	5,800	$            34,800.00