Chapter 11, Problem 11.6E

(a)

To determine

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.

To Journalize: the issuance of preferred stock transaction for Corporation P.

To determine

To Journalize: the issuance of preferred stock transaction for Corporation P.

(b)

To determine

To Post: the journal entries into the stockholders’ equity accounts for Corporation P.

(c)

To determine

To discuss: the statement presentation of the accounts.