Cornerstone Exercise 10-25 (Algorithmic) Recording the Sale of Common and Preferred Stock Estefan Corp. is authorized by its charter from the state of Wisconsin 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 $0.01 per share. On January 1, 2019, Estefan Corp. issues 250 shares of preferred stock at $55 per share and 12,200 shares of common stock at $13 per share. Required: Prepare the journal entry to record the issuance of the stock. 2019 Jan. 1 Cash Preferred Stock Additional Paid-In Capital - Preferred Stock Accounts Payable Additional Paid-In Capital - Treasury Stock (Record sale of preferred and common stock) 00000 Feedback Check My Work When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity