Recording the Sale of Common and Preferred Shares}

At the end of its first year of operations, Mulligan Corporation has outstanding shares of 96,000 common shares and 1,900 preferred shares. The Province of Ontario authorized Mulligan to issue 3,000 shares of \(6 \%\) preferred shares with a par value of \(\$ 40\) per share and 110,000 shares of common shares with a par value of \(\$ 0.01\) per share. Any common shares sold during the year had a selling price of \(\$ 17.50\) per share. Mulligan's preferred shares were issued at \(\$ 47\).

\section*{Required:}

Prepare the journal entry to record the issuance of shares during the first year.

\section*{Brief Exercise