PROBLEM : Lump sum issuance of stock. Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash Instructions: (a) Give the entry for the issuance assuming the par value of the common was $5 and the market value $30, and the par value of the preferred was $40 and the market value $50 (Each valuation is on a per share basis and there are ready markets for each stock.) PROBLEM I SOLUTION: GENERAL JOURNAL DATE ACCOUNT NAME REF DEBIT CREDIT Cash 72,000 Connon stick 10,000 Additional paid in capital.common Resterred stock Auditional paid in capital preferred PRESENTE LOS CÓMPUTOS DE LA DISTRIBUCIÓN A CADA ACCIÓN PRIMERO DETERMINE EL VALOR TOTAL DEL MERCADO DE LAS DOS CLASES DE ACCIONES COMMON STOCK (2000X55 $ 10,000 PREFERRED STOCK TOTAL VALOR DEL MERCADO $ LUEGO DETERMINE LA DISTRIBUCIÓN DEL PRECIO TOTAL DE LA COMPRA A CADA ACCIÓN COMMON STOCK ( 2000 y $5) s, 9000 PREFERRED STOCK ( TOTAL DISTRIBUCIÓN $ (b) Give the entry for the issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a market value of $25 per share. GENERAL JOURNAL DATE ACCOUNT NAME REF DEBIT CREDIT PRESENTE LOS CÓMPUTOS DE LA DISTRIBUCIÓN A CADA ACCIÓN PRIMERO DETERMINE EL VALOR TOTAL DEL MERCADO DE LA ACCIÓN "COMMON STOCK" COMMON STOCK ) $ LUEGO DETERMINE LA DISTRIBUCIÓN DEL PRECIO TOTAL DE LA COMPRA A CADA ACCIÓN COMMON STOCK ) $ PREFERRED STOCK TOTAL DISTRIBUCIÓN $
