Preferred stock no par value
Another similarity between preferred stocks and bonds is that while the market value of preferred shares can fluctuate, the dividends don't. Preferred stocks have a set dividend rate that's based Journal entry for issuance of preferred stock. Company A issued 100,000 shares of preferred stock of $30 par value against $1,000,000 in cash and $2,000,000 worth of property, plant and equipment. They carry dividend of $3 per share. It doesn't refer to the current market value of the shares outstanding but, rather, these entries reflect the par value of the company's stock. In cases where there is no par value assigned to the stock, it represents the amount investors paid into the firm when the company issued shares.