Ayayai Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 40,000 shares for cash at $51 per share. July 1 Issued 60,000 shares for cash at $56 per share.

Journalize the transactions.

Post to the stockholders equity accounts. (Use T-accounts.)