Brief Exercise 10-40 (Algorithmic) Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 110,000 common stock and 17,000 preferred stock. The State of Ohio authorized Mulligan to issue 18,000 shares of 6% preferred stock with a par value of $35 per share and 111,000 shares of common stock with a par value of $6 per share. Any preferred stock sold during the year had a selling price of $45.50 per share. Mulligan's common stock was issued at $21. Required: Prepare the journal entry to record the issuance of stock during the year. Cash v 3,150,000 x Preferred Stock 630,000 Additional Paid-In Capital-Preferred Stock v 189,000 Common Stock 666,000 x Additional Paid-In Capital-Common Stock 1,665,000 x (Record sale of preferred and common stock)

Brief Exercise 10-40 (Algorithmic) Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 110,000 common stock and 17,000 preferred stock. The State of Ohio authorized Mulligan to issue 18,000 shares of 6% preferred stock with a par value of $35 per share and 111,000 shares of common stock with a par value of $6 per share. Any preferred stock sold during the year had a selling price of $45.50 per share. Mulligan's common stock was issued at $21. Required: Prepare the journal entry to record the issuance of stock during the year. Cash v 3,150,000 x Preferred Stock 630,000 Additional Paid-In Capital-Preferred Stock v 189,000 Common Stock 666,000 x Additional Paid-In Capital-Common Stock 1,665,000 x (Record sale of preferred and common stock)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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