Hi, does anyone can help me with this homework problem? A company is authorized

Question

Hi, does anyone can help me with this homework problem?
A company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully participating preferred stock, and 750,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:

may 5 Exchanged 2000 shares of preferred stock for a building a market value of 130000
july 20 sold 1550 shares of preffered stock for 50 cash per share
dec 20 sold 1000 shares of preferred stock 555 cash per share

Thank you

Explanation / Answer

In the first journal entry you are receiving a building in exchange for preferred stock. Much like when you receive cash, you debit the asset (for the total purchase price) and credit preferred stock (for the number of shares X the par value) you will also credit the difference ( asset amount - preffered stock amount) to an account called Paid-in-excess of par- preferred stock. On the second journal entry you are debiting the asset you receive (cash) and crediting Preferred stock for the number of shares sold times the sales price. The third journal entry you again debit the asset received (cash) for the sale price per share times the number of shares sold, credit preffered stock for the number of shares times par, and finally credit Paid-in-capital in excess of par-preferred stock for the sales price per share (55) minus the par per share (50) then times that amount by number of shares sold.

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