Asked by Emalie Saalsaa on Jul 09, 2024
Verified
Journalize the following stock transactions for Rick Corporation.
July 22 Issued 10,000 shares of $6 par common stock for $45,000 cash.
28 Issued 6,000 shares of $4 par common stock for $35,000 cash.
31 Issued 4,000 shares of $10 par, 7% preferred stock for $50,000 cash.
Par Common Stock
The value assigned to a share of common stock in the company's charter, not indicative of the market value.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with predetermined dividend payments.
Cash
Money in the form of bills or coins, available for transactions or banking.
- Get acquainted with the tactics of distributing common and preferred stock for cash and non-cash rewards.
- Log stock transactions, specifying issuances for cash, asset trades, and participation in stock subscriptions.
Verified Answer
NB
Learning Objectives
- Get acquainted with the tactics of distributing common and preferred stock for cash and non-cash rewards.
- Log stock transactions, specifying issuances for cash, asset trades, and participation in stock subscriptions.