Question

On January 1, Stahl Company issued 5,000 shares of 6%, $20 par value, cumulative preferred stock...

On January 1, Stahl Company issued 5,000 shares of 6%, $20 par value, cumulative preferred stock for $25 per share. Record the required transaction.

Homework Answers

Answer #1
Date Particulars Debit Credit
Jan-01 Bank Account A/c           Dr. 125000 (5000*25)
              To 6% Cumulative Preferred Stock A/c 100000 (5000*20)
               To Securities premium A/c 25000 (5000*5)
(Being 5000 preferred stock issued at premium)
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