Exercise 11-3 Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCO
ID: 341783 • Letter: E
Question
Exercise 11-3
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
LINK TO TEXT
LINK TO TEXT
Preferred Stock
Paid-in Capital in Excess of Par Value—Preferred Stock
Exercise 11-3
Sheffield Corp. 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 104,000 shares for cash at $141 per share. July 1 Issued 165,600 shares for cash at $146 per share.
Explanation / Answer
1-Feb Cash 14664000 =104000*141 Preferred Stock 5200000 =104000*50 Paid-in Capital in Excess of Par Value—Preferred Stock 9464000 1-Jul Cash 24177600 =165600*146 Preferred Stock 8280000 =165600*50 Paid-in Capital in Excess of Par Value—Preferred Stock 15897600 2 Preferred Stock 1-Feb 5200000 1-Jul 8280000 Bal. 13480000 Paid-in Capital in Excess of Par Value—Preferred Stock 1-Feb 9464000 1-Jul 15897600 Bal. 25361600
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