Colorado Corporation has two classes of stock: common, $3 par value; and preferred, $30 par value. Requirements1. Journalize Colorado 's issuance of 4,500 shares of common stock for $ 6 per share. 2. Journalize Colorado 's issuance of 4,500 shares of preferred stock for a total of $ 135,000.

1)

Debit Cash/Bank 27,000 (4,500 shares x $6 per share)

Credit Common Stock 13,500 (4,500 shares x $3 per share)

Credit Paid-In Capital in Excess of Stated Value-Common 13,500 (4,500 shares x $3 per share)

2)

Debit Cash/Bank 135,000 (4,500 shares x $30 per share)

Credit preferred Stock 135,000 (4,500 shares x $30 per share)

Explanation:

any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value-Common"