A corporation issues 50 "packages" of securities for $154 per package. Each package consists of three shares of $5 par common stock and one share of $50 par preferred stock. If the market values of $40 per share for the common stock and $100 per share for preferred stock are known, the journal entry to record the sale would assign a total value to the preferred stock of

$3500

Explanation:

Hi,, to answer this, first, we have to multiply the 50 packages by the cost per package (154).

50x 154 = $7700

Now to calculate the market value of the stocks we have to multiply the quantity of each share by its market value, and then add both results.

Common stocks: 3 x $40 = $120

Preferred stock: 1 x $100 = $100

Total market value: 120+100= $220

Now the value of the preferred stock assigned to the packages will be:

Total value of 50 packages x (market value preferred stock / total market value) =

7700 x (100/220) = $3500

tell them not to name the burger a cheese burger