Blossom Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $105,000. (a)   Prepare the journal entry for the issuance when the market price of the common shares is $172 each and market price of the preferred is $215 each. (b)   Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $180 per share.

Question

Blossom Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $105,000.

(a)   Prepare the journal entry for the issuance when the market price of the common shares is $172 each and market price of the preferred is $215 each.
(b)   Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $180 per share.

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