Brief Exercise 11-4 Larkspur, Inc. issues 8,700 shares of $101 par value preferr

Question

Brief Exercise 11-4

Larkspur, Inc. issues 8,700 shares of $101 par value preferred stock for cash at $118 per share.

Journalize the issuance of the preferred stock. (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.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Explanation / Answer

The journal is:

Cash a/c..Dr$1026600(8700*118)

To preferred stock $878700(8700*101)

To paid in capital in excess of par-preferred stock $147900

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