Coronado Corporation issued 392 shares of $10 par value common stock and 128 sha
ID: 2531609 • Letter: C
Question
Coronado Corporation issued 392 shares of $10 par value common stock and 128 shares of $50 par value preferred stock for a lump sum of $17,424. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.
Prepare the journal entry to record the issuance. (Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g., 1,520. 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
Working Note :
Numbers of shares Fair Value per Share Total Fair Value Proportionate Lumpsum Amount Proportionate Issue Price Common stock 392 shares $20 $7,840 ($7,840 / $19,360) = 0.404959 $17,424 $17,424 * 0.404959 = $7,056 Preferred stock 128 shares $90 $11,520 ($11,520 / $19,360) = 0.595041 $17,424 $17,424 * 0.595041 = $10,368 $19,360