Callable Preferred Stock
Response to the following problem:
On March 4, 2010, the Hein Corporation issues 1,000 shares of $100 par preferred stock for $125 per share. The stock is not callable by the corporation until three years have expired. On April 7, 2013, all the stock is called by the corporation.
Required
1. Prepare the journal entry to record the issuance of the stock.
2. Prepare the journal entry to record the recall
a. At a price of $130 per share.
b. At a price of $114 per share.