Tran 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.

Instruction

1. Journalize the transactions
2. Post to the stockholders' equity accounts.
3. Indicate the financial statement presentation of the related accounts

Solution

Preferred Stock: Listed first in paid-in capital under Capital Stock
Paid-in Capital in Excess of Par-Preferred Stock: Listed first in paid-in capital under Additional