Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a

Question:

Parker has issued 2,000 shares of and 400 shares of preferred stock for a lump sum of $72,000 cash.
Instructions:
(a) Give the entry for the issuance, assuming the of the common was $5 and the market value $30, and the of the preferred was $40 and the market value $50. (Each valuation is on a per-share basis and there are ready markets for each stock.)
(b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market value, and the has a market value of $25 per share.
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,...