Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lumpsum of$13,500 The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.Prepare the journal entry to record the issuance of the preferred stockO Cash$5,.000Preferred Stock$5 000O Preferred Stock$5.000Cash$5 000O Cash58 100Preferred StockAdditional Paid-in-Capital P/SNone of the Above$5.000$3 100

Journal entry is a primary entry that records the financial transactions initially.

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13.500 The common stock has a market price of $20 per share, and the preferred stock has a market price of 590 per share

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $13.500 The common stock has a market price of $20 per share, and the preferred stock has a market price of 590 per share

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

Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump
sum of
$13,500 The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share.
Prepare the journal entry to record the issuance of the preferred stock
O Cash
$5,.000
Preferred Stock
$5 000
O Preferred Stock
$5.000
Cash
$5 000
O Cash
58 100
Preferred Stock
Additional Paid-in-Capital P/S
None of the Above
$5.000
$3 100

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