Question: Morgan Corporation issues 500 packages of securities for 180 per
Morgan Corporation issues 500 “packages” of securities for $180 per package. Each package includes 10 shares of $1 par value common stock and 2 shares of $50 par value preferred stock. The separate market value of the common stock was $8 at the time of the sale and Morgan credits the Common Stock account to $5,000 and the Additional Paid in Capital on Common Stock account for $29,615.38. What was the separate market value of the preferred stock on the date of the sale, and what journal entry' would Morgan make to record this transaction?
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