$3$rief Exercise $10-40($Algorithmic$)$

Recording the Sale of Common and Preferred Stock

At the end of its first year of operations, Mulligan Corporation has outstanding shares of $109,000$ common stock and $16,000$ preferred stock. The State of Ohio authorized Mulligan to issue $17,000$ shares of $6\%$ preferred stock with a par value of $$35$ per share and $110,000$ shares of common stock with a par value of $$16$ per share. Any preferred stock sold during the year had a selling price of $$52\mathrm{.}50$ per share. Mulligan's common stock was issued at $$28.$

Required:

Prepare the journal entry to record the issuance of stock during the year.

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$($Record sale of preferred and common stock$)$