Sheffield Corp. 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. Feb. 1 Issued 51,500 shares for cash at $54 per share. July 1 Issued 67,000 shares for cash at $58 per share. Journalize the transactions.

The journal entries are shown below:

On Feb 1

Cash A/c Dr $2,781,000 (51,500 shares * $54)

To Preferred Stock $2,575,000 (51,500 shares * $50)

To Additional Paid-in Capital in excess of par - Preferred stock $206,000

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

On July 1

Cash A/c Dr $3,886,000 (67,000 shares * $58)

To Preferred Stock $3,350,000 (67,000 shares * $50)

To Additional Paid-in Capital in excess of par - Preferred stock $536,000

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)