Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $115,000. a. b. Prepare the journal entry for the issuance when the market price of the common shares is $174 each and market price of the preferred is $218 each. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $200 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 account titles and enter O for the amounts) No. Account Titles and Explanation Debit Credit
Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $115,000. a. b. Prepare the journal entry for the issuance when the market price of the common shares is $174 each and market price of the preferred is $218 each. Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $200 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 account titles and enter O for the amounts) No. Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dd2.
Transcribed Image Text:Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of
$115,000.
a.
b.
Prepare the journal entry for the issuance when the market price of the common shares is $174 each and market price of the
preferred is $218 each.
Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $200 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
account titles and enter O for the amounts)
No. Account Titles and Explanation
Debit
Credit
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