Recording the Sale of Common and Preferred Stock Estefan Corp. is authorized by

Question

Recording the Sale of Common and Preferred Stock Estefan Corp. is authorized by its charter from the state of Wisconsin to issue 750 shares of preferred stock with a 7 percent dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2011, Estefan Corp. issues 250 shares of preferred stock at $55 per share and 11,900 shares of common stock at $13 per share. Hide Prepare the journal entry to record the issuance of the stock.. If an amount box does not require an entry, leave it blank.

Explanation / Answer

Particulares DR CR Cash 13750 Preferred Stock 12500 Additional Paid-in Capital, Common Stock 1250 Issue Of Prefered Stock Cash 154700 Common stock(11900*0.01 119 Additional Paid-in Capital, Common Stock 154581 Issue Of Common Stock 168450 168450

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