Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump sum of $70,000 cash.Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock

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Asked Sep 6, 2019
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Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump sum of $70,000 cash.


Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock

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Expert Answer

Step 1

The stock in which shareholder’s are entitled to received dividend whose amount may vary from time to time and at time it even gets missed is known as common stock.

The ...

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Final Accounts for Companies

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