RSM219H1 Lecture Notes - Lecture 11: Coastline Community College, Treasury Stock, Preferred Stock

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Common stock, paid in capital in excess of par preferred stock are all shown in separate line items on the balance sheet. If marvin company issues 2,000 shares of par value common stock for. ,000, the appropriate journal entry to records this transaction will include: Actual price: ,000 for 2,000 shares (,000/2,000 = per share) Proceeds (cash received) = per share * 2,000 shares = ,000. Common stock sold (use stated par value)= per share * 2,000 shares = ,000. Paid in capital in excess of par value = (sales price par value) * 2,000 shares. Watson, inc. issues 5,000 shares of 6%, par value, cumulative preferred stock for. Proceeds (cash received) = per share * 5,000 shares = ,000,000. Preferred stock 6% (use stated par value)= per share * 5,000 shares = ,000. Paid in capital in excess of par value = (sales price par value) * 5,000 shares.