Garb Inc issues 5,000 shares of $100 par value preferred stock for cash at $130 per share Journalize the issuance of the preferred stock ...

Garb Inc. issues 5,000 shares of $100 par value preferred stock for cash at $130 per share.

Question:

Garb Inc. issues 5,000 shares of $100 preferred stock for cash at $130 per share. Journalize the issuance of the preferred stock.

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,...