Answer and Explanation:
The journal entries are shown below:
On Jan 10
Cash (65,000 shares × $4) $260,000
To Common Stock (65,000 shares × $1) $65,000
To Paid in capital in excess of stated value - Common Stock $195,000
(Being the issuance of the common stock is recorded)
On Mar 1
Cash (1,100 shares × $54) $59,400
To Preferred stock (1,100 shares × $50) $55,000
To Paid in capital in excess of par value - Preferred Stock $4,400
(Being the issuance of the preferred stock is recorded)
On May 1
Cash (110,000 shares × $5) $550000
To Common Stock (110,000 shares × $1) $110,000
To Paid in capital in excess of stated value - Common Stock $440,000
(Being the issuance of the common stock is recorded)
On Sep 1
Cash (4,000 × $4) $16,000
To Common Stock (4,000 × $1) $4000
To Paid in capital in excess of stated value - Common Stock $12,000
(Being the issuance of the common stock is recorded)
On Nov 1
Cash (2,000 shares × $54) $108,000
To Preferred stock (2,000 shares × $50) $100,000
To Paid in capital in excess of par value - Preferred Stock $8,000
(Being the issuance of the preferred stock is recorded)
