Palo Verde Company was incorporated on January 1 2013 with t

Palo Verde Company was incorporated on January 1, 2013, with the following authorized capitalization:

25,000 shares of common stock, stated value $6 per share

8,000 shares of 8% cumulative preferred stock, par value $20 per share

Make entries required for each of the following transactions:

(a) Issued 14,000 shares of common stock for a total of $518,000 and 5,000 shares of preferred stock at $25 per share

(b) Subscriptions were received for 3,000 shares of common stock at a price of $41. A 25% down payment is received.

(c) Collected the remaining amount owed on the stock subscriptions and issued the stock.

(d) Sold the remaining authorized share of common stock at $53 per share.

Solution

Solution