Estes Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common

Question:

Estes Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a “package” sale. Total proceeds received amount to $39,000.

Required

Record the transaction for each independent assumption shown:

1. The common stock has a current market value of $19 per share; the current market value of preferred stock is not known.

2. The common stock and the preferred stock have a current market value per share of $22 and $60 respectively.

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...