Exercise 11-5 (part level submission) hodge corporation issued 117,000 shares of $19 par value, cumulative, 7% preferred stock on january 1, 2016, for $2,530,000. in december 2018, hodge declared its first dividend of $840,000. collapse question part (a) prepare hodge’s journal entry to record the issuance of the preferred stock.

Explanation:

The journal entry is shown below:

Cash A/c Dr $2,530,000

          To  Preferred stock $2,223,000         (117,000 shares × $19)

          To Additional Paid-in-Capital  $307,000

(Being the preferred stock is issued for cash)

And, the remaining amount will be credited to Additional Paid-in-Capital i.e  $2,530,000  - $2,223,000  = $307,000

sorry can't read, cuz too small the words.

Explanation: