2. Gunns Inc. issues 15,000 shares of $1 par value common stock and 25 shares of $1,000 par value, 6% preferred stock to a private investor for $630,000. The fair value of the common stock is $40 per share and the fair value of the preferred stock is $1200 per share.

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.