Corporation has two classes of stock: common, $4 par value; and preferred, $5 par value. Requirements 1. Journalize Maine 's issuance of 1 comma 500 shares of common stock for $ 12 per share. 2. Journalize Maine 's issuance of 1 comma 500 shares of preferred stock for a total of $ 7 comma 500.

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Business

Demarion Solis

13 August, 07:45

Corporation has two classes of stock: common, $4 par value; and preferred, $5 par value. Requirements 1. Journalize Maine 's issuance of 1 comma 500 shares of common stock for $ 12 per share. 2. Journalize Maine 's issuance of 1 comma 500 shares of preferred stock for a total of $ 7 comma 500.

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Answers (1)

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Andres Proctor · Answer 1

The answer is given below;

Explanation:

1. Bank (1,500*12) Dr.$18,000

Capital (1,500*4) Cr.$ 6,000

Paid in capital in excess of par (1500 * (12-4)) Cr.$12,000

2. Bank Dr.$7,500

Capital (1,500*5) Cr. 7,500