Martinez Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 July 1 (a) Issued 22,800 shares for cash at $51 per share. Issued 34,200 shares for cash at $56 per share. Prepare a tabular summary to record the transactions. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities
Martinez Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 July 1 (a) Issued 22,800 shares for cash at $51 per share. Issued 34,200 shares for cash at $56 per share. Prepare a tabular summary to record the transactions. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Martinez Corp, is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of
operations, the company had the following events and transactions pertaining to its preferred stock.
Feb. 1
$
July 1
(a)
apital
Prepare a tabular summary to record the transactions. Include margin explanations f the changes in revenues and expenses. (If a
transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered
for the particular Asset, Liability or Equity item that was reduced.)
Feb. 1
Issued 22,800 shares for cash at $51 per share.
Issued 34,200 shares for cash at $56 per share.
July 1
$
Pref. Stock
Assets
Cash
+
scribed Text
Expense
$
$
PIC in Excess of Par Value
Pref.
Liabilities
Retained Earnings
$
$
Dividend
S
Common Stock
Revenue.
PIC in Excess of Par
Com.
Expense
Re
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