Combined Sale of Stock
Response to the following problem:
Estes Company issues 300 shares of $50 par preferred stock and 1,000 shares of $10 par common stock in a "package" sale. Total proceeds received amount to $39,000.
Required
Record the transaction for each independent assumption shown:
1. The common stock has a current market value of $19 per share; the current market value of preferred stock is not known.
2. The common stock and the preferred stock have a current market value per share of $22 and $60, respectively.