Splish Brothers Inc. is authorized to issue both preferred and common stock. The par value of...

Splish Brothers Inc. is authorized to issue both preferred and common stock. The par value of the preferred is $49. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

Feb.	1		Issued 19,500 shares for cash at $57 per share.
July	1		Issued 13,000 shares for cash at $61 per share.

Journalize the transactions. (Record journal entries in the order presented in the problem. 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.)

Date	Account Titles and Explanation	Debit	Credit
Feb. 1


July 1

Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)

Preferred Stock
Date	Explanation	Ref.	Debit	Credit	Balance


Paid-in Capital in Excess of Par—Preferred Stock
Date	Explanation	Ref.	Debit	Credit	Balance

Solutions

Expert Solution

Date

Account Titles and Explanation

Debit

Credit

Feb. 1

Cash (19500*57)

1111500

Preferred Stock (19500*49)

955500

Paid in capital in excess of par-Preferred

156000

July 1

Cash (13000*61)

793000

Preferred stock

637000

Paid in capital in excess of par-Preferred

156000

Post to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in the previous part.)

Preferred Stock
Date	Explanation	Ref.	Debit	Credit	Balance
Feb 1	Issued shares			955500	955500
July 1	Issued shares			637000	1592500
Paid-in Capital in Excess of Par—Preferred Stock
Date	Explanation	Ref.	Debit	Credit	Balance
Feb 1	Issued shares			156000	156000
July 1	Issued shares			156000	312000

ekkarill92 answered 1 year ago

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