CSecure htt edugen.wieyplus.com/edugeryltymainun WileyPLUS Kimmel, Accounting, b

Question

CSecure htt edugen.wieyplus.com/edugeryltymainun WileyPLUS Kimmel, Accounting, be Briet Exercise 11-4 windsor, Inc. issues 8.530 ? ares of il05 par vaue preferrec stock for cas £111 per share. Joumalize the uanc o the preferrdstock. (Credit account titics are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titics and enter for the amounts.) Debit Crelit By accessn this Queston Assistance, you will learn while 'you earn points based on the Font Potential Policy set by your instructor. Question Attempts: of 3 usedAVF FOR LATER Earn Maximum Points available onhr if yo rswer this question correstly in two attempts or less Screenshat saved The streenshot was added ta your E O lype here to search

Explanation / Answer

when the company issued 8500 shares, it will collect cash = 8500 shares * 114. But credit will be given to prefered stock = 8500 * 105 and balance is credited to Paid in capital in excess of par = 8500 * ( 114 - 105)  

Note : Quality of the image upload is a litle bit confusing. Hence requesting you to check the values 8500 shares , 105 par value. Otherwise give a comment........... so that I can revise the answer if needed.

Hope the work helped you.

Debit Credit Cash a/c ( 8500 * 114 ) 969,000 Preferred stock a/c ( 8500 * 105 ) 892500 Paid in capital in excess of par - Preffered stock = ( 8500 * 9 ) 76500

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