Question: Penland Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.
Feb. 1 Issued 40,000 shares for cash at $51 per share.
July 1 Issued 60,000 shares for cash at $56 per share.
Instructions: (a) Journalize the transactions.
(b) Post to the stockholders' equity accounts. (Use T-accounts.)
(c) Discuss the statement presentation of the accounts.