On January 1, 2018. Gato Company issued 1,000 shares of $80 par callable preferred shares for $200,000.

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On January 1, 2018. Gato Company issued 1,000 shares of $80 par callable preferred shares for $200,000. Gato can call these preferred shares on January 1, 2019, for $200 per share. On June 1, 2019, Gato calls the shares.

Required

a. What is the journal entry to record the issuance of the preferred shares?

b. What is the journal entry when Gato calls the preferred shares?

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jun 27, 2019 08:33 AM

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On January 1, 2018. Gato Company issued 1,000 shares of $80 par callable preferred shares for $200,000.

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a The preferred share issuance is treated like a regular issue of shares Account January 1 ...View the full answer

Intermediate Accounting

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