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

Essay

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}$