Issuances of Stock Cada Corporation is authorized to issue 10,000 shares of $100 par, convertible, callable pre- ferred stock and 80,000 shares of no-par, no-stated-value common stock. There are currently 7,000 shares of pre ferred and 30,000 shares of common stock outstanding, The following are several alternative transactions: 1. Purchased land by issuing 640 shares of preferred stock and 1,000 shares of common stock. Preferred and com- mon are currently selling at $113 and S36 per share, respectively. No reliable appraisal of the land is available. Same as Transaction 1, except that land is appraised at $104,000, and the preferred stock has no current market 2. valuc. Issued, for $99,000 cash, a combination of 400 shares of preferred stock and bonds payable with a face value of $50,000. Currently, the preferred stock is selling for $120 per share and the bonds at 104. Same as Transaction 3, except that the bonds do not have a current market value. Same as Transaction 3, except that the preferred stock does not have a current market value Preferred sharcholders (who had originally paid the corporation $110 per share for their stock) convert 6,500 preferred shares into 19,500 shares of common stock. The current market prices of the preferred stock and the common stock are $120 and $41 per share, respectively The corporation calls the 7,000 shares of preferred stock (originally issued at $110 per share) at $123 per share. Common stock is currently selling for $42 per share. Shareholders elect not to convert into common stock. Same as Transaction 7, except that shareholders owning 2,000 shares of preferred stock elect to convert each share into 3 shares of common stock. The remaining 5,000 preferred shares are retired. 3. 4. 5. 6. 7. 8. Required: Next Level Prepare the journal entry necessary to record each transaction. Below each entry, explain your reason for the values used