Question

# Your answer is partially correct. Try again. Skysong, Inc. issues 8,100 shares of \$108 par value...

Skysong, Inc. issues 8,100 shares of \$108 par value preferred stock for cash at \$110 per share.

Journalize 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 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount
enter an account title enter a debit amount enter a credit amount

I have the right numbers, I need help with the proper ACCOUNT TITLES

Number of shares = 8,100

Par value per share = \$108

Issue price per share = \$110
Cash will be debited by = Number of shares x Issue price per share

= 8,100 x 110

= \$891,000

Preferred stock will be credited by = Number of shares x Par value per share

= 8,100 x 108

= \$874,800

Paid in capital in excess of par - preferred will be credited by = Number of shares x (Issue price per share- Par value per share)

= 8,100 x (110-108)

= 8,100 x 2

= \$16,200

 Account Titles and Explanation Debit Credit Cash \$891,000 Preferred stock \$874,800 Paid in capital in excess of par - Preferred \$16,200 ( To record issuance of preferred stock)