Recording the Sale of Common and Preferred Stock

Donahue Corporation is authorized by its charter from the State of Illinois to issue 2,000 shares of 7% preferred stock with a par value of $30 per share and 125,000 shares of common stock with a par value of $0.01 per share. On January 1, 2013, Donahue issues 1,300 shares of preferred stock at $35 per share and 84,000 shares of common stock at $12.50 per share.

Required:

Hide

Prepare the journal entry to record the issuance of the stock. For a compound transaction, if an amount box does not require an entry, leave it blank.

2013 Jan. 1
	(Record sale of preferred and common stock)