Parker Corporation has issued 2,200 shares of common stock and 440 shares of pre
ID: 2510692 • Letter: P
Question
Parker Corporation has issued 2,200 shares of common stock and 440 shares of preferred stock for a lump sum of $82,000 cash.
Give the entry for the issuance assuming the same facts as the par value of the common stock was $5 and the fair value of $26 per share, and the par value of the preferred stock was $40 and has no ready market. (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.)
Account Titles and Explanation
Debit
Credit
Account Titles and Explanation
Debit
Credit
Explanation / Answer
Cash 82000 Common Stock 11000 =2200*5 Paid in capital in excess of par-Common Stock 46200 =2200*(26-5) Preferred Stock 17600 =440*40 Paid in capital in excess of par-Preferred Stock 7200