Answer:
Explanation:
In recording journal entries of a common or preferred stock issue, the following recording points are key;
Debiting is only done for the cash proceeds from the issue.
Crediting is done for;
The preferred stock amount multiplied by the par value.
The paid in capital which is the excess of par value i.e. stock issued at a premium.
So, to find the preferred stock amount;
=Shares issued × Par Value
=510 × $100
=$51000
To get the total amount of paid in capital, we subtract the preferred stock amount from the total proceeds of the issue;
=$57300 - $51000
=$6300
Journal Entry
Cash 57300
Preferred Stock 51000
Additional Paid-In Capital 6300
