Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $30 per share. Record the issuance of the preferred shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

The journal entry for the issuance of the preferred stock is shown below:

Explanation:

Cash A/c ... Dr $30,000

Preference Stock A/c ... Cr $10

Paid in Capital in excess of Par A/c ... Cr $29,990

Working Note:

Cash = Shares * Issued price per share

where

Shares are 1,000

Issued Price per share is $30

= 1,000 * $30

= $30,000

Preference Stock = Shares * Par price

= 1,000 * $0.01

=$ 10

Paid in Capital in excess of Par = Cash - Preference stock

= $30,000 - $10

= $29,990