Respuesta :
Answer:
Feb 1=> Cash ( debit) = 2,444,000.
Prefered stock (credit) = 2,350,000.
Paid in capital in excess of par value-preferred stock(credit) = 94000.
July 1=> Cash (debit) = 3,500,000.
Prefered stock (credit) = 3,125,000.
Paid in capital in excess of par value-preferred stock(credit) = 375000.
Explanation:
(A). On FEB. 1, the accounts and Explanation is given below:
Cash ( debit) = 2,444,000 {that is from; 47,000 × $52}.
Prefered stock (credit) = 2,350,000 { that is from; 47,000 × $50}.
Paid in capital in excess of par value-preferred stock(credit) = 2,444,000 - 2,350,000 = 94,000.
(B). On JULY 1, the accounts and Explanation is given below;
"July 1 Issued 62,500 shares for cash at $56 per share."
=> Cash (debit) = 62500 × 56 = 3,500,000.
Prefered stock (credit) = 3,125,000 { that is from; 62,500 × $50}.
Paid in capital in excess of par value-preferred stock(credit) = 3,500,000 - 3,125,000 = 375,000.
Answer:
Dr cash $2,444,000
Cr preferred stock $2,350,000
Cr paid-in capital in excess of par-preferred stock $94,000
Dr cash $3,500,000
Cr preferred stock $3,125,000
Cr paid-in capital in excess of par-preferred stock $375,000
Explanation:
The cash proceeds received from the issuance of preferred stock on February 1 is $ 2,444,000.00 (47,000*$52)out of which $2,350,000 ($50*47000) is credited to preferred stock and the balance of $94,000($2*47000) is credited to paid-in capital in excess of par-preferred stock
The cash proceeds received from the issuance of preferred stock on July 1 is $ 3,500,000 (62500*$56)out of which $ 3,125,000.00 ($50*62500) is credited to preferred stock and the balance of $375,000($6*62,500) is credited to paid-in capital in excess of par-preferred stock
