Funs Inc. issues 25,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for ($ see below). The fair value of the common stock is ($see below) per share and the fair value of the preferred stock is below

1. Prepare the journal entry to record the transaction assuming that the fair market values (FMV) for both the common and preferred stock are known and shown below.

Issue Price FMV Common FMV Preferred

$1,920,000 $75 per share $1,500 per share

B. Prepare the journal entry assuming that only the FMV of the common stock is known (amount above)