Question

Minnesota Corporation has two classes of stock: common, $2 par value; and preferred, $10 par value. Requirements 1. Joumalize Minnesota's issuance of 3,000 shares of common stock for $15 per share. 2. Joumalize Minnesota's issuance of 3,000 shares of preferred stock for a total of $30,000 Requirement 1. Journalize Minnesota's issuance of 3,000 shares of common stock for $15 per share. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanations Debit Credit Requirement 2. Journalize Minnesota's issuance of 3,000 shares of preferred stock for a total of $30,000. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit

Answer 1

Entry	Account	Debit	Credit	Explanation
1.	Cash	45,000		Record cash inflow from issuance (3,000 x $15)
	Common Stock		6,000	Record common stock at par (3,000 x $2)
	Additional Paid-in Capital, Common Stock		39,000	Record amount received in excess of par ($45,000 - $6,000)
2.	Cash	30,000		Record cash inflow from issuance
	Preferred Stock		30,000	Record preferred stock at par (3,000 x $10)