Question

Need help figuring out the two July 1st balances for preferred stock.

Exercise 13-09 a-b (Video) Tran Corporation 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 20,000 shares for cash at $53 per share. July 1 Issued 12,000 shares for cash at $57 per share. Your answer is correct. mually Steven atly wende Journalire the transactions. (Record journal entries in Credit Date reb, 1 Account Titles and Explanation Cash | Preferred Stock 1 Paid in Capital in Excess of Par-Preferred Stoc July 1 Cash | Preferred Stock 1 Paid in Capital in Excess of Par-Preferred Stock

Answer 1

Preferred stock

Date	Explanation Ref.	Debit	Credit	Balance
Feb. 1			1,000,000	1,000,000
July 1			600,000	1,600,000

Preferred stock balance on July 1 = Preferred stock issued on Feb. 1 + Preferred stock issued on Feb. 1

= 1,000,000 + 600,000

= $1,600,000

Paid in capital in excess of par - Preferred stock

Date	Explanation Ref.	Debit	Credit	Balance
Feb. 1			60,000	60,000
July 1			84,000	144,000

Paid in capital in excess of par - Preferred stock balance on July 1 = 60,000 + 84,000

= $144,000

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