Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $330,000 (22,000 shares × $15)
To Common Stock $220,000 (22,000 shares × $10)
To Additional Paid-in Capital in excess of par - Common Stock $110,000
(22,000 shares × $5)
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
2. Cash A/c Dr $240,000 (8,000 shares × $30)
To Preferred Stock $200,000 (8,000 shares × $25)
To Additional Paid-in Capital in excess of par - Preferred Stock $40,000
(8,000 shares × $5)
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
3. Cash A/c Dr $864,000 (48,000 shares × $18)
To Common Stock $480,000 (48,000 shares × $10)
To Additional Paid-in Capital in excess of par - Common Stock $384,000 (48,000 shares × $8)
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
