Exercise 11-10 Tran Corporation is authorized to issue both preferred and common

Question

Exercise 11-10 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 19,500 shares for cash at $58 per share July 1 Issued 13,500 shares for cash at $62 per share. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 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 Credit Balance Paid-in Capital in Excess of Par Preferred Stock Date Explanation Ref. Debit Credit Balance

Explanation / Answer

Date Account titles & Explanations Debit Credit 1-Feb Cash 1131000 preferred stock 975000 paid in capital in excess of par 156000 1-Jul Cash 837000 preferred stock 675000 paid in capital in excess of par 162000 preferred stock Date Explanation Debit Credit Balance 1-Feb 975000 975000 1-Jul 675000 1650000 paid in capital in excess of par-PS Date Explanation Debit Credit Balance 1-Feb 156000 156000 1-Jul 162000 318000

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