Coldplay Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par

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Coldplay Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $100,000.

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a. Prepare the journal entry for the issuance when the market price of the common shares is $165 each and market price of the preferred is $230 each. (Round to nearest dollar.)

b. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $170 per share.

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Related Book For answer-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Jun 27, 2023 08:16 AM

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Coldplay Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par

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a b Fair value of Common 500 x 165 Fair value of Preferred 100 x 230 Allocated to Comm...View the full answer

Intermediate Accounting

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