On March 4, 2013, Hein Corporation issues 1,000 shares of $100 par preferred stock for $125 per

Question:

On March 4, 2013, Hein Corporation issues 1,000 shares of $100 par preferred stock for $125 per share. The stock is not callable by the corporation until 3 years have expired. On April 7, 2016, all the stock is called by Hein.

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...