Wally, Inc. issued 500 shares of $10 par preferred stock at $83 a share. Each share had a warrant attached that allowed the holder to purchase one share of $5 par common stock for $15. Soon after the preferred stock was issued, the preferred stock was selling ex-rights for $64 a share, and the warrants were selling for $16 each. The entry to record the issuance of the preferred stock would include a

credit to Additional Paid -in Capital on Preferred Stock for $28,200

Explanation:

The journal entry will be:

Debit: Cash = $500 × 83 = $41500

Credit: Preferred stock = $5000

Credit: Additional paid in capital on preferred stock = $28200

Credit: Paid in capital - Common stock warrants = $8300

Note that Additional paid in capital on preferred stock was calculated as:

Amount allocated to preferred stock = (64/64+16) × 41500 = 33200

Less: Preferred stock face value = $500 × $10 = $5000

Additional paid in capital on preferred stock = $28200

answer; bootstrapping is your answer;

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!