The shares of preferred stock for equipment and merchandise


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:

Mar. 1: Issued 1,000 shares of preferred stock for $30 cash per share.

Mar. 15: Exchanged 2,000 shares of preferred stock for equipment and merchandise inventory with market values of $90,000 and $20,000, respectively.

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Accounting Basics: The shares of preferred stock for equipment and merchandise
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