PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during the year:
Question:
PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during the year:
(a) Issued 25,000 shares of $1 par common stock for $25,000 cash.
(b) Issued 20,000 shares of $1 par common stock for $22,000 cash.
(c) Issued 22,000 shares of $1 par common stock for $21,000 cash.
(d) Issued 2,000 shares of $50 par, 8% preferred stock for $100,000 cash.
(e) Issued 1,000 shares of $50 par, 8% preferred stock for $49,000 cash.
(f) Issued 1,000 shares of $50 par, 8% preferred stock for $51,500 cash.
(g) Issued 2,500 shares of no-par common stock for $11,875 cash.
(h) Issued 1,500 shares of no-par, $7 preferred stock for $72,000 cash.
REQUIRED
Prepare general journal entries to record the transactions, identifying each transaction by letter.
Common StockCommon 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...
Step by Step Answer:
DATE a b C GENERAL JOURNAL DESCRIPTION Cash Common Stoc...View the full answer
