Marianna Corporation is authorized to issue 100,000 shares of $5 stated par value stock and 2,000 shares of $100 par value, 6 percent preferred stock. Prepare journal entries in journal form without explanations to record the following transactions: Solution Preparation of Journal entry of stock and preferred stock of Marianna Corporation .We have, When company authorised to issue stock at par value, we get .

1. Marianna Corporation is authorized to issue 100,000 shares of $5 stated par value stock and
2,000 shares of $100 par value, 6 percent preferred stock. Prepare journal entries in journal form
without explanations to record the following transactions:
Solution
Preparation of Journal entry of stock and preferred stock of Marianna Corporation .We
have,
When company authorised to issue stock at par value, we get
Particulars Dr Cr
Unissued Common Stock $ 500,000
100,000 x5
Unissued 6% preferred Stock(2,000 x100) $200,000
Authorised Common stock $ 500,000
Authorised 6% preferred Stock $200,000