Recording the Sale of Common and Preferred Stock

Donahue Corporation is authorized by its charter from the state of Illinois to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2013, Donahue Corporation issues 250 shares of preferred stock at $55 per share and 12,600 shares of common stock at $13 per share.

Required:

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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)