A Company Is Authorized to Issue 50,000 Shares of $50

Essay

A company is authorized to issue 50,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock and 500,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:
$\begin{array}{|c|l|}\hline\text { Mar. 1 } & \text { Issued 1,000 shares of common stock for } \$ 30 \text { cash per share. } \\\hline 15 & \begin{array}{l}\text { Exchanged 2,000 shares of preferred stock for equipment and Merchandise } \\\text { inventory with market values of } \$ 90,000 \text { and } \$ 20,000, \text { respectively. }\end{array} \\\hline\end{array}$