Crane Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $101,000. a. b. Prepare the journal entry for the issuance when the market price of the common shares is $155 each and market price of the preferred is $333 each. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $172 per share. (List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 1,225. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
Crane Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $101,000. a. b. Prepare the journal entry for the issuance when the market price of the common shares is $155 each and market price of the preferred is $333 each. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $172 per share. (List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, e.g. 1,225. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Intermediate Accounting 105
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Transcribed Image Text:## Stock Issuance Accounting
### Scenario
Crane Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $101,000.
#### Task A
Prepare the journal entry for the issuance when the market price of the common shares is $155 each and the market price of the preferred is $333 each.
#### Task B
Prepare the journal entry for the issuance when only the market price of the common stock is known, and it is $172 per share.
**Instructions:**
- List all debit entries before credit entries.
- Do not round intermediate calculations. Round final answers to 0 decimal places, e.g., 1,225.
- Credit account titles are automatically indented when the 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.
### Journal Entry Table
| No. | Account Titles and Explanation | Debit | Credit |
|-----|--------------------------------|-------|--------|
| a. | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| b. | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Use this structure to record the necessary journal entries for Crane Inc.'s stock issuance.
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