Make journal entries to record these transactions in the books of Northern company if the shares are issued: at $10 per share of common stock and $120 per share of preferred stock. at $0.8 per share of common stock and $80 per share of preferred stock. (i). When common and preferred shares are issued at par: (ii).
What is par value of Northern Company preferred stock?
The Northern company issued 100,000 shares of its $1 par value common stock and 25,000 shares of its $100 par value preferred stock. Make journal entries to record these transactions in the books of Northern company if the shares are issued: at $10 per share of common stock and $120 per share of preferred stock.
How much is the dividend for cumulative preferred stock?
The cumulative preferred stock shareholders must be paid the $900 in arrears in addition to the current dividend of $600. Once all cumulative shareholders receive the $1,500 due per share, the company may consider paying dividends to other classes of shareholders.
What do you need to know about par value stock?
Par value stock. Par value stock is a type of common or preferred stock having a nominal amount (known as par value) attached to each of its share. Par value is the per share legal capital of the company that is usually printed on the face of the stock certificate. It is also known as stated value and face value.
How to calculate par value of common stock?
Formula. 1 Common stock at par = par value * number of shares issued. 2 Additional paid-in capital = number of shares* (amount at which shares issued – par value) 3 Retained earning = Net Income – dividend.
What is par value of Northern company stock?
Make journal entries to record these transactions in the books of Northern company if the shares are issued: 1 at par. 2 at $10 per share of common stock and $120 per share of preferred stock. 3 at $0.8 per share of common stock and $80 per share of preferred stock.
How many shares of common stock did northern company issue?
The Northern company issued 100,000 shares of its $1 par value common stock and 25,000 shares of its $100 par value preferred stock. Make journal entries to record these transactions in the books of Northern company if the shares are issued:
