Donahue Corporation is authorized by its charter from the State of Illinois to issue 2,000 shares of 7 percent preferred stock with a par value of $30 per share and 125,000 shares of common stock with a par value of $0 01 per share On January 1, 2011, Donahue issues 1,300 shares of preferred stock ...

Journal Date Account and Explanation Debit Credit 2011 Jan 1 Cash a 1095500 Preferre ...

Donahue Corporation is authorized by its charter from the State of Illinois to issue 2,000 shares of

Question:

Donahue is authorized by its charter from the State of Illinois to issue 2,000 shares of 7 percent preferred stock with a of $30 per share and 125,000 shares of with a of $0.01 per share. On January 1, 2011, Donahue issues 1,300 shares of preferred stock at $35 per share and 84,000 shares of at $12.50 per share.

Required:
Prepare the journal entry to record the issuance of the stock. 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...