Baltimore Bike had outstanding 12,000 shares of $50 par callable preferred stock. The corporation called 35% of the shares (originally issued at $75 per share) at a call price of $80 per share. Required: Record the journal entry for the call of this preferred stock. PAGE 1 GENERAL JOURNAL Score: 45/49 GENERAL JOURNAL Score: 45/49

GENERAL JOURNAL

Score: 45/49

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4

Account Titles	Debit	Credit
Preferred stock (12,000 X 35% X $50)	$210,000	-
Additional paid in capital - Preferred stock [12,000 X 35% X ($75 - $50)]	$105,000	-
Retained earnings	$21,000	-
Cash (12,000 X 35% X $80)