e have been provided with the folllowing information
on may 15 20000 share of $5 per share of common stok were issued at $ 15
on june 1 15000 share of $30 preffered stock stok were issued at $ 50
we will journalize entry on may 15 and june 1 as follow
Date | Description | Debit | Credit |
May 15 | Cash | $ 300,000 | |
To Common share | $ 100,000 | ||
To Addition Paid in capital,Common stock | $ 200,000 | ||
June 1 | Cash (15000 x 50) | $ 750,000 | |
To preffered stock | $450,000 | ||
To Addition Paid in capital,prefferd stock | $ 300,000 |