Question

Corporation has two classes of​ stock: common, ​$5 par​ value; and​ preferred, ​$25 par value. Requirements 1. Journalize Arizona​'s issuance of 5 comma 500 shares of common stock for $ 12 per share. 2. Journalize Arizona​'s issuance of 5 comma 500 shares of preferred stock for a total of $ 137 comma 500.

Answer 1

Please refer below the journal entry for the issuance of Common stock as well as preferred Stock

Step-by-step explanation:

1. Journalize Arizona​'s issuance of 5,500 shares of common stock for $ 12 per share

Cash Debit $66,000

Common Stock Credit $27,500

Paid in Capital (Excess of Par) i.e. Premium Credit $38,500

2. Journalize Arizona​'s issuance of 5,500 shares of preferred stock for a total of $ 137,500.

Cash Debit $137,500

Preferred Stock Credit $137,500