Brief Exercise $10-40($Algorithmic$)$

Recording the Sale of Common and Preferred Stock

At the end of its first year of operations, Mulligan Corporation has outstanding shares of $96,000$ common stock and $18,000$ preferred stock. The State of Ohio authorized Mulligan to issue $19,000$ shares of $6\%$ preferred stock with a par value of $$45$ per share and $97,000$ shares of common stock with a par value of $$16$ per share. Any preferred stock sold during the year had a selling price of $$54\mathrm{.}00$ per share. Mulligan's common stock was issued at $$30.$

Required:

Prepare the journal entry to record the issuance of stock during the year.

$$

Preferred Stock

$$

$$

Additional Paid$-$In Capital$-$Preferred Stock

$$

$$

Common Stock

$$

$$

Additional Paid$-$In Capital$-$Common Stock $$

$$

$$

$($Record sale of preferred and common stock$)$