Splish Brothers Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporations capital stock.

On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.

May 2 Cash 221,400 221,400 Capital Stock (Issued 12,300 shares of $ 15 par value common stock at $18 per share) 10 Cash 799,500 99,500 Capital Stock (Issued 12,300 shares of $ 55 par value preferred stock at $ 65 per share) 15 Capital Stock 23,625 Cash 23,625 (Purchased 1,575 shares of common stock for the treasury at $ 15 per share) 31 Cash 6,400 Capital Stock Gain on Sale of Stock 4,000 2,400 Sold 400 shares of treasury stock at$ 16 per share)