Question

Arizona

Corporation has two classes of​ stock: common,

​$5

par​ value; and​ preferred,

​$15

par value.

Requirements

1.	Journalize Arizona​'s issuance of 2,500 shares of common stock for $8 per share.
2.	Journalize Arizona​'s issuance of 2,500 shares of preferred stock for a total of $37,500

Answer 1

Ans: Journal Entry

Event	Account title and explanation	Debit($)	Credit($)
A	Cash(2,500*8)	20,000
	Common Stock(2,500*5)		12,500
	Additional Paid in capital		7,500
	{ to record issuance of common stock}
B	Cash{2,500*15}	37,500
	Preferred Stock		37,500
	{ to record issuance of preferred Stock}