Donahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019, Donahue Corporation issues 250 shares of preferred stock at $55 per share and 12,900 shares of common stock at $13 per share. Required: Prepare the journal entry to record the issuance of the stock. 2019 Jan. 1 (Record sale of preferred and common stock)

Donahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019, Donahue Corporation issues 250 shares of preferred stock at $55 per share and 12,900 shares of common stock at $13 per share. Required: Prepare the journal entry to record the issuance of the stock. 2019 Jan. 1 (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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Question

Donahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019,
Donahue Corporation issues 250 shares of preferred stock at $55 per share and 12,900 shares of common stock at $13 per share.
Required:
Prepare the journal entry to record the issuance of the stock.
2019 Jan. 1
(Record sale of preferred and common stock)

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