Recording the Sale of Common and Preferred Stock

Estefan Corp. is authorized by its charter from the state of Wisconsin 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, 2019, Estefan Corp. issues 250 shares of preferred stock at $55 per share and 12,500 shares of common stock at $13 per share.

Required:

Prepare the journal entry to record the issuance of the stock.

2019 Jan. 1	(Accounts Payable, Accounts Receivable, Cash, Common Stock, Preferred Stock)
	(Accounts Payable, Accounts Receivable, Cash, Preferred Stock, Retained Earnings)
	(Accounts Receivable, Additional Paid-In Capital - Preferred Stock, Additional Paid-In Capital - Treasury Stock, Retained Earnings, Treasury Stock)
	(Accounts Payable, Cash, Common Stock, Retained Earnings, Treasury Stock)
	(Accounts Payable, Additional Paid-In Capital - Common Stock, Additional Paid-In Capital - Treasury Stock, Retained Earnings,Treasury Stock)
	(Record sale of preferred and common stock)