E15-5B (Lump-Sum Sales Of Stock With Preferred Stock) Black Diamond Inc. Issues 2,500 Shares Of $1 Par Value Common Stock And 1,000 Shares Of $50 Par Value Preferred Stock For A Lump Sum Of $275,000. 1 B EXERCISES 3 3 3 3 3 5 C15BExercises.Qxd 1/28/13 1:2
E15-5B (Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares o 1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of 275,000.
Instructions
(a) Prepare the journal entry for the issuance when the market value of the common shares is $95 each
and market value of the preferred is $60 each.
(b) Prepare the journal entry for the issuance when only the market value of the common stock is
known and it is $90 per share.