Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50

Question:

Black Diamond Inc. issues 2,500 shares of $1 and 1,000 shares of $50 preferred stock for a lump sum of $275,000.

Instructions
(a) Prepare the journal entry for the issuance when the market value of the common shares is $95 each and market value of the preferred is $60 each.
(b) Prepare the journal entry for the issuance when only the market value of the is known and it is $90 per share.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...