Marigold Corp. began operations on April 1 by issuing 51,700 shares of $8 par va

Question

Marigold Corp. began operations on April 1 by issuing 51,700 shares of $8 par value common stock for cash at $14 per share. In addition, Marigold issued 1,800 shares of $1 par value preferred stock for $4 per share. Journalize the issuance of the common and preferred shares. (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.) Date Account Titles and Explanation Debit Credit April 1 (To record issuance of common shares) April 1 (To record issuance of preferred shares)

Explanation / Answer

Date Account titles and explanation Debit Credit April 1 Cash(51,700 * $14) $723,800 Common stock(51,700 * $8) $413,600 Additional paid in capital-Common stock $310,200 April 1 Cash(1,800 * $4) $7,200 Preferred stock(1,800 * $1) $1,800 Additional paid in capital-Preferred stock $5,400

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