(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions: a) Prepare the journal entry for the issueance when the market value of the common shares is $95 each and market value of the preferred is $60 each. b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share.
(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions: a) Prepare the journal entry for the issueance when the market value of the common shares is $95 each and market value of the preferred is $60 each. b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 15E
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(Lump-Sum Sales of Stock with
Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000.
Instructions:
a) Prepare the
b) Prepare the journal entry for the issuance when only the market value of the common stock is known and it is $90 per share.
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