Cooke Corporation issues 10,000 shares of $50 par value preferred stock for cash at $80 per share. The entry to record the transaction will consist of a debit to Cash for $800,000 and a credit or credits to

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The par value of the preferred stock is $50 per share, and the company is selling it for $80 per share, which means each share has a premium of $30. The total amount received for the 10,000 shares is $800,000 ($80 per share x 10,000 shares). The Preferred Stock account will be credited for the par value of the shares issued, which is $500,000 ($50 per share x 10,000 shares), and the remaining $300,000 ($30 premium per share x 10,000 shares) will be credited to the Paid-in Capital in Excess of Par-Preferred Stock account.

Cooke Corporation Issues 10,000 Shares of $50 Par Value Preferred