Cornerstone Exercise $10-25($Algorithmic$)$

Recording the Sale of Common and Preferred Stock

Donahue Corporation is authorized by its charter from the state of Illinois to issue $750$ shares of preferred stock with a $7\%$ dividend rate and a par value of $$50$ per share and $22,000$ shares of common stock with a par value of $$0\mathrm{.}01$ per share. On January $1,2019,$ Donahue Corporation issues $250$ shares of preferred stock at $$55$ per share and $11,300$ shares of common stock at $$13$ per share.

Required:

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

$2019$ Jan. $1$

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

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