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    ohiostudent119's Avatar
    ohiostudent119 Posts: 6, Reputation: 1
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    #1

    Feb 24, 2009, 12:07 PM
    Issuance of preferred stock in excess of authorized amount
    A Corp is authorized to issue 2,000 shares of $50 par vale , 8% preferred stock.

    They then issue 3,000 shares of preferrred stock for cash of $120 per share. Can they do this ? If so what is the journal entry for this 3000 shares issued?
    Bose04's Avatar
    Bose04 Posts: 5, Reputation: 1
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    #2

    Feb 24, 2009, 02:14 PM
    As far as I know, the only way to issue more stock than authorized is to change the Company's Articles of Incorporation.

    If this is done I would imagine the stock would be issued the same as prior stock.
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