Assignment Gradebook ORIO Dowhloadale eexu ent CALCULATOR FULL SCREENRINTER VERS

Question

Assignment Gradebook ORIO Dowhloadale eexu ent CALCULATOR FULL SCREENRINTER VERSION BACK NEXT Exercise 11-3 Flounder Corp. is auth had the following events and transactions pertaining to its preferred stock. Flounder Corp, is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the frst year of operations, the company Feb. 1 Issued 55,800 shares for cash at $78 per share. July 1 Issued 91,200 shares for cash at $78 per share. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indente 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.) Debit Credit Date Account Titles and Explanation in the order of journal entries posted in the previous part) Post to the stockholders' equity accounts. (Use T-accounts.) (Post entries Preferred Stock ?? +2 7:56..

Explanation / Answer

Solution:

Part 1 --- Journal Entries

Date

General Journal

Debit

Credit

Feb.1

Cash (55,800 Shares x $78)

$4,352,400

Preferred Stock (55,800 Shares x Par $50)

$2,790,000

Additional Paid in Capital in excess of Par - Preferred Stock (bal Fig)

$1,562,400

July.1

Cash (91,200 Shares x $78)

$7,113,600

Preferred Stock (91,200 Shares x Par $50)

$4,560,000

Additional Paid in Capital in excess of Par - Preferred Stock (bal Fig)

$2,553,600

Part 2 – Post to the stockholders’ equity section

Preferred Stock

Feb.1

$2,790,000

July.1

$4,560,000

Ending Bal

$7,350,000

Pain in Capital In Excess of Par Value - Preferred Stock

Feb.1

$1,562,400

July.1

$2,553,600

Ending Bal

$4,116,000

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Date

General Journal

Debit

Credit

Feb.1

Cash (55,800 Shares x $78)

$4,352,400

Preferred Stock (55,800 Shares x Par $50)

$2,790,000

Additional Paid in Capital in excess of Par - Preferred Stock (bal Fig)

$1,562,400

July.1

Cash (91,200 Shares x $78)

$7,113,600

Preferred Stock (91,200 Shares x Par $50)

$4,560,000

Additional Paid in Capital in excess of Par - Preferred Stock (bal Fig)

$2,553,600

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