Asked by Jessica Tufts on Jul 25, 2024
Verified
Prepare the journal entries for Blitz Industries:
April 6 Issued 9,000 shares of $112 par value common stock for $1150,000
April 15 Issued 54,000 shares of 58%, $1525 par value preferred stock for $13200,000
April 23 Issued 5,000 shares of $5 par common stock for $20,000 cash.
Par Value
The nominal or face value of a bond, stock, or coupon as stated by the issuer.
Preferred Stock
A class of ownership in a corporation with a specified dividend that must be paid out before dividends to common stockholders.
Common Stock
A type of equity ownership in a corporation, representing a claim on a portion of the profits and assets.
- Gain an understanding of the approach for distributing common and preferred shares for cash and non-cash incentives.
- Record stock transactions in a journal, encompassing issuance for cash, asset exchange, and stock subscriptions.
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SA
Learning Objectives
- Gain an understanding of the approach for distributing common and preferred shares for cash and non-cash incentives.
- Record stock transactions in a journal, encompassing issuance for cash, asset exchange, and stock subscriptions.