Question

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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

Answer 1

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)