Penland Corporation is authorized to issue both preferred and common stock. The par value of the preferred

Question:

Penland Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

Feb. 1Issued 40,000 shares for cash at $51 per share.

July 1Issued 60,000 shares for cash at $56 per share.

Instructions

(a) Journalize the transactions.

(b) Post to the stockholders' equity accounts. (Use T-accounts.)

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