abc has issued 3,000 shares of common stock and 400 shares of preferred stock for a lump sum of $80,000 cash.

Instructions

1. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $32, and the par value of the preferred stock was $20 and the fair value $50.
2. Give the entry for tike issuance assuming the same facts as (a) above except the preferred stock has no ready market and the common stock has a fair value of $22 per share.