I don't understand question 2

8l shares and price per SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial SPII. K Problem: Kate's Cards from Chapters I through 1o) siness continues to flourish. It hardly seems that just eleven months ago, in Septenther d ate started the business. She is especially pleased that she was able to succesfully 2015, that fend herself against what turned out to be a mistaken attempt to sue her for copynght inlrngenes She was able to clearly demonstrate that her card designs were unique and significanly ditlars from the designs sold by Mega Cards Kate has decided to take on an investor. Taylor Kasey believes that Kate's Cands represens a good investment and wishes to invest money to help Kate expand the business. Kate, however, somewhat unsure how to structure Taylor's investment. Taylor wishes to be an equity investor nder than simply providing a loan to Kate. Kate wants to know whether she should issue Taylor cn stock or preferred stock for her investment. Discuss the difference between the two classes of stock and suggest which type smre propriate for Kate to issue 1. rs to be a passive investor, but does wish to have a steady income from dividende the decision is made to issue 50 shares of $100 par value, 6 percent cumulative prefctrod stock. Provide the journal entry to record the issuance of the preferred stock for cash Kate also wishes to pay dividends on both her common shares and the preferred stuct Shei 2, Kate has decided that she does not want to give up voting control of Kate's Cands, Siace Ti 3