Preferred Stock, $50 Par 80,000 Paid-in Capital from Treasury Stock (1) 1,080 (5) Paid-in Capital in Excess of Par Value-Preferred Stock 16.000 Common Stock, $10 Par 50,000 60,000 (1) (5) Treasury Stock (900 shares 5,400 of common) 13,500 (2) (3) Required Using this information, give detailed descriptions, including number of shares and price per share when applicable, for each of the five transactions. SP11. Kate's Cards SERIAL PROBLEM: KATE'S CARDS Note: This is a continuation of the Serial Problem: Kate's Cards from Chapters / through 10.) Kate's business continues to flourish. It hardly seems that just eleven months ago, in September of 2018. Kate started the business. She is especially pleased that she was able to successfully defend herself against what turned out to be a mistaken attempt to sue her for copyright infringement. She the designs sold by Mega Cards. was able to clearly demonstrate that her card designs were unique and significantly different from Kate has decided to take on an investor. Taylor Kasey believes that Kate's Cards represents a good investment and wishes to invest money to help Kate expand the business. Kate, however, is somewhat unsure how to structure Taylor's investment. Taylor wishes to be an equity investor rather than simply providing a loan to Kate. Kate wants to know whether she should issue Taylor common stock or preferred stock for her investment. 1. Discuss the difference between the two classes of stock and suggest which type is more ap- propriate for Kate to issue. 2. Kate has decided that she does not want to give up voting control of Kate's Cards. Since Taylor prefers to be a passive investor, but does wish to have a steady income from dividends, the decision is made to issue 50 shares of $100 par value, six percent cumulative preferred stock. Provide the journal entry to record the issuance of the preferred stock for cash