Can someone please help! Thanks At the end of its first year of operations, Mull
ID: 2469855 • Letter: C
Question
Can someone please help! Thanks
At the end of its first year of operations, Mulligan Corporation has outstanding shares of 96,000 common stock and 1,900 preferred stock. The State of Ohio authorized Mulligan to issue 3,000 shares of 6% preferred stock with a par value of $40 per share and 110,000 shares of common stock with a par value of $0.01 per share. Any preferred stock sold during the year had a selling price of $47 per share. Mulligan's common stock was issued at $17.50.
Prepare the journal entry to record any issuance of stock during the year. For a compound transaction, if an amount box does not require an entry, leave it blank.
Cash
Preferrd Stock
Additional Paid-in Capital Prefered Stock
Common Stock
Additional Paid-in Capital common Stock
Explanation / Answer
Mulligan Corporation
Journal
Account Titles Debit Credit $ $ Cash 1,680,000 Common Stock 960 Additional Paid-in Capital - Common Stock 1,679,040 To record issue of common stock at $ 17.50 Cash 89,300 Preferred Stock 76,000 Additional Paid-in Capital- Preferred Stock 13,300 To record issue of preferred stock at $ 47