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.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...
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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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