ABC Corporation is authorized to issue 50,000 shares of $50 par value, 8 cumulative, participating preferred stock and 750,000 shares of $5 par value common stock Please prepare journal entries to record the following transactions that occurred during the first year of operations January 1 Exchange...

Date Particular Amount Dr Amount Cr Jan1 Service C ...

ABC Corporation is authorized to issue 50,000 shares of $50 par value, 8% cumulative, participating preferred stock

Question:

ABC is authorized to issue 50,000 shares of $50 8% cumulative, participating preferred stock and 750,000 shares of $5 common stock. Please prepare journal entries to record the following transactions that occurred during the first year of operations:
January 1 Exchanged 500 shares of for $2,500 worth of services incurred to get the organized.
February 1 Sold 96,000 shares of for $8 per share, cash
March 1 Sold 35,000 shares of for $10 per share, cash.
March 31 Sold 10,000 shares of preferred stock for $85 per share, cash.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...