Recording the Sale of Common and Preferred Stock At the end of its first year of operations, Mulligan Corporation has outstanding shares of 84,000 common stock and 13,000 preferred stock. The State of Michigan authorized Mulligan to issue 14,000 shares of 6% preferred stock with a par value of $45 per share and 85,000 shares of common stock with a par value of $12 per share. Any common stock sold during the year had a selling price of $22 per share. Mulligan's preferred stock was issued at $63.00. Required: Prepare the journal entry to record the issuance of stock during the year. If an amount box does not require an entry, leave it blank. Cash Preferred Stock Additional Paid-In Capital Preferred Stock Common Stock Additional Paid In Capital Common Stock Feedback Check My Wik 0 0 585,000 When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of lockholders' equity