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 100,000 common stock and 20,000 preferred stock. The state of Ohio authorized Mulligan to issue 21,000 shares of 6% preferred stock with a par value of $50 per share and 101,000 shares of common stock with a par value of $8 per share. Any preferred stock sold during the year had a selling price of $60.00 per share. Mulligan's common stock was issued at $22. Required: Prepare the journal entry to record the issuance of stock during the year, Cash 6,000,000 X Preferred Stock 100,000 X Additional Paid In Capital-Preferred Stock 5.200,000 X Common Stock 560.000 X 1,000,000 X Additional Pald-In Capital-Common Stock (Record sale of preferred and common stock)