Question

Brief Exercise 15-04 Sandhill Corporation issued 385 shares of $10 par value common stock and 127 shares of $50 par value preferred stock for a lump sum of $18,360. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance. (Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g., 1,520. 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 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Click if you would like to Show Work for this question:

Answer 1

Answer:

                        Market    Total               Allocated

              Shares      Price    Market        %      Value

           

CS   385  20         7,700     37.74%       6929

PS   127   100         12,700     62.26%       11,431

   

  TOTAL           20,400          $18,360

Cash                   18,360

Preferred Stock                                  6,350

Paid-in capital in excess of stated value -  PS              5,081      

Common Stock                                 3,850

Paid-in capital in excess of stated value -  CS              3,079