Black Diamond Inc. issues $2,500$ shares of $$1$ par value common stock and $1,000$ shares of

$$50$ par value preferred stock for a lump sum of $$275,000.$

Instructions

a$.$ Prepare the journal entry for the issuance when the market value of the common shares is

$$95$ each and market value of the preferred is $$60$ each.

b$.$ Prepare the journal entry for the issuance when only the market value of the common stock

is known and it is $$90$ per share.