Tyler Corporation Has 100,000 Preference Shares with a €40 Par

question 295

Essay

Tyler Corporation has 100,000 preference shares with a €40 par value authorized. During the year, it had the following transactions related to its preference shares.
(a) Issued 30,000 shares at €55 per share.
(b) Issued 10,000 shares for equipment having a €700,000 asking price. The shares had a fair value of €60 per share
Instructions
Journalize the transactions.

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like wages or lease payments.

Marginal Costs

The extra expense incurred from making one more unit of a product or service.

Average Cost

The total cost of production divided by the number of goods produced, showing the cost of producing each unit.

Marginal Cost

The cost incurred to produce one additional unit of a product or service.