Estefan Corp. is authorized by its charter from the state of Wisconsin to issue

Question

Estefan Corp. is authorized by its charter from the state of Wisconsin to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019, Estefan Corp. issues 250 shares of preferred stock at $55 per share and 12,100 shares of common stock at $13 per share.

I need to find "cash" & "additional paid-in capital - common stock to finish the journal entry to record the issuance of the stock.

Explanation / Answer

Cash 171050 =(250*55)+(12100*13)      Preferred stock 12500 =250*50      Additional paid in capital-Preferred stock 1250 =250*(55-50)      Common stock 121 =12100*0.01      Additional paid in capital-Common stock 157179 =12100*(13-0.01)

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