Tran Corporation is authorized to issue both preferred and common stock. The par value of the...

 

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Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 20,000 shares for cash at $53 per share. July 1 Issued 12,000 shares for cash at $57 per share. (a) Your answer is correct. Journalize the transactions. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Feb. 1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock July 1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Debit 1,060,000 684000 Credit 1000000 60000 600000 84000 (b) Post to the stockholders' equity accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Date Explanation Ref. Debit Feb. 1 July 1 Paid-in Capital in Excess of Par-Preferred Stock Date Explanation Ref. Feb. 1 July 1 eTextbook and Media List of Accounts Save for Later Debit Credit Credit 1000000 600000 Balance Balance Attempts: 0 of 3 used Submit Answer Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 20,000 shares for cash at $53 per share. July 1 Issued 12,000 shares for cash at $57 per share. (a) Your answer is correct. Journalize the transactions. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Feb. 1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock July 1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Debit 1,060,000 684000 Credit 1000000 60000 600000 84000 (b) Post to the stockholders' equity accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Date Explanation Ref. Debit Feb. 1 July 1 Paid-in Capital in Excess of Par-Preferred Stock Date Explanation Ref. Feb. 1 July 1 eTextbook and Media List of Accounts Save for Later Debit Credit Credit 1000000 600000 Balance Balance Attempts: 0 of 3 used Submit Answer

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Answer Here are the journal entries and postings to the stockholders equity accounts in order from ... View the full answer