Ravonette Corporation issued 300 shares of $10 par value ordinary shares and 100 shares of $50 par value preference shares for a lump sum of $13,500. The ordinary shares have a market price of $20 per share, and the preference shares have a market price of $90 per share. Instructions Prepare the journal entry to record the issuance.
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Step 1:** Calculate the total amount received from issuing the shares at market price: Total amount = (300 shares x $20 per share) + (100 shares x $90 per share) Total amount = $6,000 + $9,000 Total amount = $15,000 ** Show more…
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