Exercise 0-4

A company issued 5,000 shares of its $5 par value common stock having a market value of $40 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $855,000. In the journal entry for this issuance, how much should we record for Paid-in Capital in Excess of Par Common Stock?