Stock Issuance Morris had the following transactions during 2010:

1. Issued 2,000 shares of $10 par common stock for cash at $17 per share.

2. Issued 1,000 shares of preferred stock to acquire land. The preferred stock has a par value of $5 per share. The land has been appraised at $7,000.

3. Issued 5,000 shares of $10 par common stock as payment to a company that provided advertising for the company. The stock was selling on the stock exchange at $12 per share at the time of issuance.

Required Identify and analyze the effect of each transaction.

AppendixLO1