On March 20, Haymaker Corporation issues 2,500 shares of $100 par value preferred stock at $150 cash per share. On November 18, the company purchases 500 shares of previously issued $14 par value common stock at $53 cash per share.

Prepare the journal entries necessary to record both transactions.

	Account	Debit	Credit
	Additional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		Answer
	Additional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		Answer
	Additional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		Answer
	To record the issuance of preferred stock.
	Additional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		Answer
	Additional paid-in capitalCashCommon stockCompensation expenseDividends payablePreferred stockRetained earningsTreasury stockN/A		Answer
	To record the repurchase of common stock.

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