Amygdala Corporation has issued 4,000 shares of common stock and 600 shares of preferred stock for a lump sum of $125,000 cash.

a) Prepare the Journal Entry to record stock issuance assuming the par value of the common stock was $7 and the fair value $32, and the par value of preferred stock was $35 and the fair value $120, all per share.

b) Prepare the journal entry to record stock 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 $18 per share.