Respuesta :
Answer:
See the explanation below:
Explanation:
Crane Company
Date    Details                           DR ($)        CR ($)
June 12: Cash                           326,250
       Common stock                               87,000
       Share Premium - Common stock (1)             239,250
       Being the issue of common stock at a premium.
June 11: Cash                            299,600
       Preferred stock (2)                            282,800 Â
       Share premium - Preferred stock (3)               16,800 Â
       Being the issue of preferred stock at a premium.
Nov. 28 Treasury stock                      3,450
       Common stock (4)                   4,800
       Cash                                         8,250
       Being a purchase of treasury stock at more than per value.
Note:
(1) Share Premium - Common stock = 326,250 - 87,000 = 239,250
(2) Preferred stock =2,800 * $101 = 282,800
(3) Share premium - Preferred stock = (107 - 101) * 2,800 = 16,800
(4) Â Common stock = 8,250 - 3450 = 4,800 when the par value method is used instead of cash method.
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The stocks or shares are the ownership in the business of any corporation or a company. The shares value is determined by taking the total requires capital value and the amount of per-share price.
The shares can be either common shares or preferred shares. They differ based upon the rights and amount of dividends to the shareholders.
The journal entries for the Crane Company are attached below.
Working Note:
1. The share premium- common stock is determined by the difference of cash amount and common stock amount.
2.
[tex]\begin{aligned}\text{Preferred Stock}&=\text{Number of shares}\times\text{Par Value}\\&=2,800\times\$101\\&=\$282,800\end{aligned}[/tex]
[tex]\begin{aligned}\text{Share Premium-Preferred Stock}&=\left( \text{Cash Value}-\text{Par Value}\right )\times\text{Number of shares}\\&=\left(\$107-\$101 \right )\times2,800\\&=\$16,800\end{aligned}[/tex]
3. The amount of common stock for treasury is the difference between the cash amount and treasury stock amount.
To know more about common stock and preferred stock, refer to the link:
https://brainly.com/question/9970004
