Maxville Company issues 250 shares of $40 par preferred stock and 1,000 shares of $10 par common stock in a package sale on December 31. Total proceeds received amount to $39,650.

Required:

Record the transaction for each independent assumption shown:

1.	The common stock has a current market value of $20 per share; the current market value of preferred stock is not known.
2.	The common stock and the preferred stock have a current market value per share of $22 and $59, respectively.

CHART OF ACCOUNTS

Maxville Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
305	Preferred Stock
311	Common Stock
318	Additional Paid-in Capital on Preferred Stock
320	Additional Paid-in Capital on Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

Record the transaction for each independent assumption shown on December 31:

1. The common stock has a current market value of $20 per share; the current market value of preferred stock is not known.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5

2. The common stock and the preferred stock have a current market value per share of $22 and $59, respectively.

General Journal Instructions

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5