Question

Concord Corporation has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump sum of $94,000 cash.

Give the entry for the issuance assuming the same facts as the par value of the common stock was $5 and the fair value of $22 per share, and the par value of the preferred stock was $40 and has no ready market. (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

Particulars	Debit	Credit
cash...Dr	94000
To Common stock		12500
To Paid in capital in excess of par - Common		55000
To preferred stock		20000
To Paid in capital in excess of par - preferred		6500