Splish Inc. issues $500$ shares of $$10$ par value common stock and $100$ shares of $$100$ par value preferred stock for a lump sum of $$125,000.$

$($a$)$ Prepare the journal entry for the issuance when the market price of the common shares is $$180$ each and market price of the preferred is $$225$ each.

$($b$)$ Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $$220$ per share.

$($Round answers to $0$ decimal places, e$.$g$.$ $$1,225.$ Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$

Cash

Common Stock

Paid$-$in Capital in Excess of Par $-$ Common Stock

Preferred Stock

Paid$-$in Capital in Excess of Par $-$ Preferred Stock

$($b$)$

Common Stock

Paid$-$in Capital in Excess of Par $-$ Common Stock

Preferred Stock

Paid$-$in Capital in Excess of Par $-$ Preferred Stock