Issuance of no-par common stock and preferred stock


1. Prepare the journal entry to record Gaylord Company's issuance of 52,000 shares of no-par value common stock assuming the shares:

a. Sell for $30 cash per share
b. Are exchanged for land valued at $1,560,000

2.

a. Prepare the journal entry to record Tamar Company's issuance of 6,000 shares of $100 par value 6% cumulative preferred stock for $102 cash per share.

b. Assuming the facts in part 1, if Tamar declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.)

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Accounting Basics: Issuance of no-par common stock and preferred stock
Reference No:- TGS050404

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