Question

On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. Write down the necessary journal entry.

Answer 1

Step-by-step explanation:

Answer:

Debit Cash 10,000

Credit Preferred stock 1000

Credit Paid in capital in excess of par value 9,000

Step-by-step explanation:

Preparation of the necessary journal entry

July 1

Debit Cash 10,000

($10*1,000)

Credit Preferred stock 1000

Credit Paid in capital in excess of par value 9,000

($10,000-$1,000)

Answer 2

Debit Cash 10,000

Credit Preferred stock 1000

Credit Paid in capital in excess of par value 9,000

Step-by-step explanation:

Preparation of the necessary journal entry

July 1

Debit Cash 10,000

($10*1,000)

Credit Preferred stock 1000

Credit Paid in capital in excess of par value 9,000

($10,000-$1,000)