Reference no: EM131427357
1. Authorized to issue: (a) 100,000 shares of $100 par value, 8 percent preferred stock; (b) 150,000 shares of no-par, $5 preferred stock; and (c) 250,000 shares of $5 par value, common stock.
2. Issued 10,000 shares of $5 par value common stock for $30 per share.
3. Issued 25,000 shares of the $100 par value preferred stock for $150 per share.
4. Issued 50,000 shares of no-par preferred stock for $50 each.
Prepare entries, if appropriate, for each event, describe how each event affects the basic accounting equation, and explain the economic significance of par value.
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