Brief Exercise 10-38 (Algorithmic) Recording the Sale of Common and Preferred Shares At the end of its first year of operations, Mulligan Corporation has outstanding 94,900 common shares and 10,000 preferred shares. The Province of Ontario authorized Mulligan to issue 13,000 shares of 6% preferred shares with a par value of $35 per share and 146,000 shares of common shares with a par value of $16 per share. Any common shares sold during the year had a selling price of $45.5 per share. Mulligan's preferred shares was issued at $28. Required: Prepare the journal entry to record the issuance of shares during the first year. For a compound transaction, for those boxes in which no entry is required, leave the box blank. Contributed Surplus-Preferred Shares Contributed Surplus-Preferred Shares Cash Common Shares Preferred Shares (Record sale of preferred and common shares)