Question 11:

A company issues 1,000 shares of preferred stock at $50 per share.

Requirements:

1. Record the journal entry to recognize the issuance of preferred stock.

2. Post the journal entry to the Preferred Stock account in the ledger.

3. Calculate the total amount of proceeds received from the issuance.

4. Explain how this transaction impacts the company's equity.

5. Discuss the differences between preferred stock and common stock in terms of dividends and ownership rights.