On March 4, 2007 the Hein Corporation issues 1,000 shares of $100 par preferred stock for $125

Question:

On March 4, 2007 the Hein Corporation issues 1,000 shares of $100 par preferred stock for $125 per share. The stock is not callable by the corporation until three years have expired. On April 7, 2010, all the stock is called by the corporation.

Required

1. Prepare the journal entry to record the issuance of the stock.

2. Prepare the journal entry to record the recall

a. At a price of $130 per share.

b. At a price of $114 per share.

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...