Gilmore Company has 24,000 authorized shares of common stock, $2 par, and 24,000 authorized shares of preferred stock, $10 par. On April 10, 2020, Gilmore sold 720 shares of common stock and 480 shares of preferred stock in one transaction for a total cash price of $24,000. The common stock recently had been selling at $26 per share while the preferred stock had recently been selling at $16 per share.

a. Prepare the entry on April 10, 2020, for the issuance of common and preferred stock.

b. Assume instead that only the market price of the common stock is known ($26 per share). Prepare the entry on April 10, 2020, for the issuance of common and preferred stock.

. Max Inc. issued 5,400 shares of Class A common stock ($1 par) and 7,200 shares of Class B common stock ($2 par) at a price of $144,000. At the time of issuance, the market price of the Class A common stock is $15 per share, and the market price of the Class B common stock is $10 per share.