Rhoads Corporation is authorized to issue 250,000 shares of $50 par, 10%, noncumulative, nonparticipating preferred stock and 5,000,000 shares of no-par common stock. Prepare journal entries to record the following selected transactions that occurred during this year:
$\begin{array} { lll }
\text {feb }&1& \text { Issued 10,000 shares of common stock for $ \$ 30 $ cash per share.} \
&15& \text {Exchanged 2,000 shares of preferred stock for }\
&& \text {quipment and merchandise inventory with }\
&& \text {market values of $ \$ 80,000 $ and $ \$ 30,000 $, }\
&& \text {respectively. }\
\end{array}$

Question

Rhoads Corporation is authorized to issue 250,000 shares of $50 par, 10%, noncumulative, nonparticipating preferred stock and 5,000,000 shares of no-par common stock. Prepare journal entries to record the following selected transactions that occurred during this year:
 $\begin{array} { lll  }
 \text {feb }&1& \text { Issued 10,000 shares of common stock for $ \$ 30 $ cash per share.} \
&15& \text {Exchanged 2,000 shares of preferred stock for }\
&& \text {quipment and merchandise inventory with }\
&& \text {market values of $ \$ 80,000 $ and $ \$ 30,000 $,  }\
&& \text {respectively. }\
\end{array}$

Quizplus · Accepted Answer

The Answer of Rhoads Corporation is authorized to issue 250,000 shares of $50 par, 10%, noncumulative, nonparticipating preferred stock and 5,000,000 shares of no-par common stock. Prepare journal entries to record the following selected transactions that occurred during this year:
 $\begin{array} { lll  }
 \text {feb }&1& \text { Issued 10,000 shares of common stock for $ \$ 30 $ cash per share.} \
&15& \text {Exchanged 2,000 shares of preferred stock for }\
&& \text {quipment and merchandise inventory with }\
&& \text {market values of $ \$ 80,000 $ and $ \$ 30,000 $,  }\
&& \text {respectively. }\
\end{array}$

Rhoads Corporation Is Authorized to Issue 250,000 Shares of $50