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 same facts as the par value of the common stock was $5 and the fair value of $26 per share, and the par value of the preferred stock was $40 and has no ready market.

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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 same facts as the par value of the common stock was $5 and the fair value of $26 per share, and the par value of the preferred stock was $40 and has no ready market.

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Stocks are issued at fair value. But, they should record as “par value for shar...

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