edugen wileyplus.com Kimmel, Accounting, 4e Helo I BACK Exercise 11-3 Vallejo Co

Question

edugen wileyplus.com Kimmel, Accounting, 4e Helo I BACK Exercise 11-3 Vallejo 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 109,880 shares for cash at $170 per share. July 1 Issued 199,800 shares for cash at $154 per share. (a) Your answer is partially correct. Try again. Journalize the transactions. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. Accoust Titles and Esplanation Feb. 1 Cash Ot Preferred Stock Paid-in Capital in Exces 13185600 30769 Preferred Stock 5494000 Paid-in Capital in Exces 25275200 Show Work is REQUIRED for this question: Open Show Work SHOW LIST or ACCOUNTS SHOW SOLUTION

Explanation / Answer

(a)

Date

Account Titles and Explanation

Debit

Credit

Feb-01

Cash

(109,880 shares * $170)

$18,679,600

Preferred stock

(109,880 shares * $50)

$5,494,000

Paid-in Capital in Excess of Par Value—Preferred Stock

(109,880 shares * $120)

$13,185,600

Jul-01

Cash

(199,800 shares * $154)

$30,769,200

Preferred stock

(199,800 shares * $50)

$9,990,000

Paid-in Capital in Excess of Par Value—Preferred Stock

(199,800 shares * $104)

$20,779,200

(b)

Preferred stock

Feb-01

$5,494,000.00

Jul-01

$9,990,000.00

Dec-31

$15,484,000.00

Paid-in Capital in Excess of Par Value—Preferred Stock

Feb-01

$13,185,600.00

Jul-01

$20,779,200.00

Dec-31

$33,964,800.00

Date

Account Titles and Explanation

Debit

Credit

Feb-01

Cash

(109,880 shares * $170)

$18,679,600

Preferred stock

(109,880 shares * $50)

$5,494,000

Paid-in Capital in Excess of Par Value—Preferred Stock

(109,880 shares * $120)

$13,185,600

Jul-01

Cash

(199,800 shares * $154)

$30,769,200

Preferred stock

(199,800 shares * $50)

$9,990,000

Paid-in Capital in Excess of Par Value—Preferred Stock

(199,800 shares * $104)

$20,779,200

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