Answer:
Explanation:
The journal entries are shown below:
On Feb 1
Cash A/c Dr $2,781,000 (51,500 shares × $54)
To Preferred Stock $2,575,000 (51,500 shares × $50)
To Additional Paid-in Capital in excess of par - Preferred stock $206,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
On July 1
Cash A/c Dr $3,886,000 (67,000 shares × $58)
To Preferred Stock $3,350,000 (67,000 shares × $50)
To Additional Paid-in Capital in excess of par - Preferred stock $536,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
