A Company Is Authorized to Issue 50,000 Shares of $50

question 110

Essay

A company is authorized to issue 50,000 shares of $50 par,10%,noncumulative,nonparticipating preferred stock,and 500,000 shares of no-par common stock.Prepare journal entries to record the following selected transactions that occurred during this year:
$\begin{array}{|c|l|}\hline \text { Mar. 1 } & \text { Issued 1,000 shares of common stock for } \$ 30 \text { cash per share. } \\\hline 15 & \begin{array}{l}\text { Exchanged } 2,000 \text { shares of preferred stock for equipment and merchandise } \\\text { inventory with market values of } \$ 90,000 \text { and } \$ 20,000, \text { respectively. }\end{array} \\\hline\end{array}$

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Definitions:

State Board of Nursing

A regulatory authority in each state responsible for the licensure, discipline, and regulation of nursing practice and education within that state.

Liable for Malpractice

The legal responsibility faced by a professional, usually in healthcare, for failing to provide the expected standard of care, resulting in harm to a patient.

Standard of Care

The level of care and competence expected of a healthcare professional or organization in their duties towards patients, based on current medical knowledge and practices.

Malpractice Insurance

A type of liability insurance that protects healthcare professionals and organizations against claims of negligence or inadequate care that results in patient injury or harm.