Problem 1

During 2018, Goodfellow has the following transactions involving its common and preferred stock:

a.	Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares and 100,000 shares are authorized.
b.	Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share.
c.	When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share.

During 2019, Goodfellow issued 4,000 shares of $100 par preferred stock at $155 a share. Each share of stock has a warrant attached to it that allows the holder to purchase one share of $5 par value common stock at $50. Shortly after the preferred stock was issued, the stock sold for $150 ex-rights and the warrants sold for $10 each.

a.	Prepare the journal entry to record the issuance of the preferred stock.
b.	Prepare the journal entry to record the exercise of 2,200 of the warrants.
c.	Prepare the journal entry to record the expiration of the remaining 1,800 warrants.

Date	Account Titles	Debit	Credit