it is about accounting

In-class exercise Lita Co. Ltd. Issues both common stock and preferred stock. Lita Co. Ltd. was authorized to issue 5,000,000 shares of common stock and 3,000,000 shares of preferred stock. Its first 3,000,000 shares of 10% 3-yuan cumulative preferred stock was issued at par; and its first 1,500,000 shares of 2-yuan common stock was issued at a market price of 3 yuan per share