Palo Verde Company was incorporated on January 1, 2011, with the following authorized capitalization 25,000 shares of common stock , stated value $6 per share 8,000 shares of 8 cumulative preferred stock, par value $20 per share Make the entries required for each of the following transactions (a) I...

a Cash 518000 Common Stock 84000 Paid ln Capital in Excess of Stated Value x Common 434000 ...

Palo Verde Company was incorporated on January 1, 2011, with the following authorized capitalization: 25,000 shares of

Question:

Palo Verde Company was incorporated on January 1, 2011, with the following authorized capitalization:
25,000 shares of , stated value $6 per share
8,000 shares of 8% cumulative preferred stock, $20 per share
Make the entries required for each of the following transactions:
(a) Issued 14,000 shares of for a total of $518,000 and 5,000 shares of preferred stock at $25 per share.
(b) Subscriptions were received for 3,000 shares of at a price of $41. A 25% down payment is received.
(c) Collected the remaining amount owed on the stock subscriptions and issued the stock.
(d) Sold the remaining authorized shares of at $53 per share.

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... 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,...