Answer:
Apr 1
DR Cash $234,000
CR Common stock $63,000
CR Paid in capital in excess of par - Common Stock $171,000
(To record issuance of common stock)
Apr 7
DR Cash $540,000
CR Preferred stock $350,000
CR Paid in capital in excess of par - Preferred Stock $190,000
(To record issuance of preferred stock)
Explanation:
April 1
Cash
9,000 * 26 = $234,000
Common stock
9,000*7 = $63,000
April 7
Cash
5,000*108 = $540,000
Preferred stock
5,000*70 = $350,000
