Swifty Corporation is authorized to issue both preferred and common stock. The p

Question

Swifty Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the tirst year of operations, the company had the to lowing events and transactions pertaining to its preferred stock Feb. 1 Issued 66,000 shares for cash at $124 per share uly1 Issued 145,800 shares far cash at $02 per share. Journalize the transactions. (Record journal entrles In the order presented in the problem. 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 SHOW LIST OF ACCOUNTSSHOW SOLUTION LINK TO TEXT LINK TO TEXT VLDEO: APPLIED SKILLS Past to the stockholders equity accounts. (Use T-accounts.) (Post entries in the order of iournal entries posted in the previous part.) Preferred Stack Paid-in Capital in Excess of Par Value Prelerred Stodk

Explanation / Answer

preferred stocks Journal Entries Date Particulars Debit Credit $33,00,000 Feb, 01     By Cash To Balance C/f           $1,05,90,000 $72,90,000 July, 01     By Cash Feb, 01 Cash (66,000 Shares X $ 124) $81,84,000 Total                                $1,05,90,000 10590000 Total                                                  To Preferred Shares Capital ( 66,000 shares X $ 50) $33,00,000          To Paid in Capital in Excess of Par Value - Preferred Stock (66,000 Shares X 74) $48,84,000 (To record the issue of Preferred Share capital) Paid in Capital in Excess of Par Value - Preferred Stocks July, 01 Cash (145,800 Shares X $ 92) $1,34,13,600         To Preferred Shares Capital (145,800 shares X $ 50) $72,90,000          To Paid in Capital in Excess of Par Value - Preferred Stock (145,800 Shares X 42) $61,23,600 $48,84,000 Feb, 01     By Cash (To record the issue of Preferred Share capital) To Balance C/f           $1,10,07,600 $61,23,600 July, 01     By Cash Total                                $1,10,07,600 11007600 Total

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