Warren Company Had the Following Transactions

question 89

Essay

Warren Company had the following transactions.
1. Issued 5,000 shares of common stock with a stated value of $10 for $110,000.
2. Issued 2,000 shares of $100 par preferred stock at $107 for cash.
Instructions
Prepare the journal entries to record the above stock transactions.

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Definitions:

Auditor's Opinion

An assessment provided by an external auditor regarding the accuracy and completeness of a company's financial statements.

Annual Reports

Corporate documents that give a comprehensive summary of a company’s activities and financial performance over the preceding year.

SEC Statement

A financial disclosure or report mandated by the Securities and Exchange Commission for public companies to provide information to investors.

Auditor's Report

A formal opinion issued by an auditor based on an audit of a company's financial statements, attesting to their accuracy.