Morgan Corporation issues 500 packages of securities for $180 per package Each package includes 10 shares of $1 par value common stock and 2 shares of $50 par value preferred stock The separate market value of the common stock was $8 at the time of the sale and Morgan credits the Common Stock accou...

Calculations Aggregate Fair Value Common Stock 8 10 Shares 50 ...

Morgan Corporation issues 500 packages of securities for $180 per package. Each package includes 10 shares of

Question:

Morgan issues 500 “packages” of securities for $180 per package. Each package includes 10 shares of $1 and 2 shares of $50 preferred stock. The separate market value of the was $8 at the time of the sale and Morgan credits the account to $5,000 and the Additional Paid in Capital on account for $29,615.38. What was the separate market value of the preferred stock on the date of the sale, and what journal entry' would Morgan make to record this transaction?
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,...