On January 1, 2022, Gato Company issued 1,000 shares of $80 par callable preferred shares for $200,000.
Question:
On January 1, 2022, Gato Company issued 1,000 shares of $80 par callable preferred shares for $200,000. Gato can call these preferred shares on January 1, 2023, for $200 per share. On June 1, 2023, Gato calls the shares.
Required
a. What is the journal entry to record the issuance of the preferred shares?
b. What is the journal entry when Gato calls the preferred shares?
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a The preferred share issuance is treated like a regular issue of s...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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