Analyzing and Identifying Financial Statement Effects of Stock Issuances On September 1, Magliolo, Inc., (a) issues 25,000 shares of $20 par value preferred stock at $58 cash per share and (b) issues 130,000 shares of $10 par value common stock at $47 cash per share. a. Using the financial statement effects template, illustrate the effects of these two issuances. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset Asset = Liabilities + Capital Capital Revenues - Expenses = Net Income (a) (b) b. Prepare the journal entries for the two issuances. General Journal Description Debit (a) Preferred Stock Credit To record issuance of preferred stock (b) Common stock To record issuance of common stock c. Post the journal entries from b to the related T-accounts. Cash (A) Common Stock (SE) (a) (a) (b) (b) Preferred Stock (SE) Additional Paid-in Capital (SE) (a) (b) (a) (b)