Answer:
(A)
cash 110,000 debit
common stock 5,000 credit
additional paid-in CS 81,086 credit
preferred stock 10,000 credit
additional paid-in PS 13, 914 credit
(B)
cash 110,000 debit
common stock 5,000 credit
additional paid-in CS 90,000 credit
preferred stock 10,000 credit
additional paid-in PS 5,000 credit
Explanation:
Market Value
500 x 180 = 90,000 0,7826 CS
100 x 225 = 25,000 0, 2174 Preferred
total 115,000
Issuance: 110,000
Preferred: 21.74% of 110,000 = 23,914
face value: 100 x100 10,000
additional paid-in 13,914
Common: 78.26% of 110,000 = 86,086
face value: 500 x 10 = 5,000
additional paid-in 81,086
If we can only determinate the common stock:
total issuance - common stock = preferred stock
110,000 - 190 x 500 = 110,000 - 95,000 = 15,000 preferred stock
additional paid-in CS: 110,000 - 5,000 = 105,000
additional paid-in PS: 15,000 - 10,000 = 5,000
