Brief Exercise 114 Skysong Inc issues 8100 shares of 108 par

Brief Exercise 11-4 Skysong, Inc. issues 8,100 shares of $108 par value preferred stock for cash at $110 per share ournalize the issuance of the preferred stock. (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 O for the amounts.) Account Titles and Explanation Debit Credit

Solution

Journal entry for issuance of Preferred Stock Accounts title and explanation Debit Credit Cash account Dr. (8100 shares @110) 891000       Preferred Stock Caital (8100 shares @108) 874800       Additional paid in capital-Preferred (8100 shares @2) 16200