Lump Sum Issuance of Par Value Shares

Essay

Lump sum issuance of par value shares
Chile Corp. issued 2,000 common shares and 400 preferred shares to an investor for $ 72,000 cash.
Instructions
a) Prepare the journal entry for the issuance, assuming the par value of the common shares was $ 5 and the market value was $ 30, and the par value of the preferred shares was $ 40 and the market value was $ 50.
a), except the preferred shares have no ready market and the common shares have a market value of $ 24.
b) Prepare the journal entry for the issuance, assuming the same facts as