Answer:
Feb-01
Dr Cash $4,368,000
Cr Prefered stock $2,080,000
Cr Paid-in capital in excess of par value-Preferred $2,288,000
Jul-01
Dr Cash $7,134,000
Cr Prefered stock $6,150,000
Cr Paid-in capital in excess of par value-Prefered $984,000
Explanation:
Preparation of the journal entries
Feb-01
Dr Cash(41,600 shares*$105) $4,368,000
Cr Prefered stock(41,600 shares*$50) $2,080,000
Cr Paid-in capital in excess of par value-Preferred $2,288,000
($4,368,000-$2,080,000)
Jul-01
Dr Cash(123,000 shares*$58) $7,134,000
Cr Prefered stock(123,000 sahres*$50) $6,150,000
Cr Paid-in capital in excess of par value-Prefered $984,000
($7,134,000-$6,150,000)
