In: Accounting
Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $108,000.
(a) | Prepare the journal entry for the issuance when the market price of the common shares is $164 each and market price of the preferred is $205 each. | |
(b) | Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $186 per share. |