Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $74,000 cash. Read each set of facts below, and answer the following questions:

Using the proportional method, give the entry for the issuance assuming the par value of the common stock was $5 and the fair value was $30. Assume the par value of the preferred stock is $40 and the fair value $50. Each valuation is on a per-share basis and there are ready markets for each stock.

		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 1,500 Cr. Preferred Stock 20,000
		Dr. Cash 74,000 Cr. Common Stock 55,500 Cr. Preferred Stock 18,500
		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 45,500 Cr. Preferred Stock 16,000 Cr. PIC - Preferred Stock 2,500
		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. Preferred Stock 16,000 Cr. Gain on Distribution 48,000