Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value preferred stock for a lump sum of $ 103,000.(a) Prepare the journal entry for the issuance when the market price of the common shares is $ 164 each and market price of the preferred is $ 205 each.(b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $ 176 per share.(Round answers to 0 decimal places, e.g. $1,225. Credit account titles are automatically indented when 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.)No.Account Titles and ExplanationDebitCredit(a)enter an account title for case Aenter a debit amountenter a credit amount enter an account title for case Aenter a debit amountenter a credit amount enter an account title for case Aenter a debit amountenter a credit amount enter an account title for case Aenter a debit amountenter a credit amount enter an account title for case Aenter a debit amountenter a credit amount(b)enter an account title for case Benter a debit amountenter a credit amount enter an account title for case Benter a debit amountenter a credit amount enter an account title for case Benter a debit amountenter a credit amount enter an account title for case Benter a debit amountenter a credit amount enter an account title for case B

The journal entries are prepared to keep the record of day to day transactions of the business.

Answered: Skysong Inc. issues 500 shares of $ 10…

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

Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value preferred stock for a lump sum of $ 103,000.

(a)		Prepare the journal entry for the issuance when the market price of the common shares is $ 164 each and market price of the preferred is $ 205 each.
(b)		Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $ 176 per share.

(Round answers to 0 decimal places, e.g. $1,225. Credit account titles are automatically indented when 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.)

No.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title for case A	enter a debit amount	enter a credit amount
	enter an account title for case A	enter a debit amount	enter a credit amount
	enter an account title for case A	enter a debit amount	enter a credit amount
	enter an account title for case A	enter a debit amount	enter a credit amount
	enter an account title for case A	enter a debit amount	enter a credit amount
(b)	enter an account title for case B	enter a debit amount	enter a credit amount
	enter an account title for case B	enter a debit amount	enter a credit amount
	enter an account title for case B	enter a debit amount	enter a credit amount
	enter an account title for case B	enter a debit amount	enter a credit amount
	enter an account title for case B