Supplemental Problem 15-2

Beekley Company issued 300 shares of $10 par common stock and 100 shares of $50 par preferred stock for a lump sum of $13,500. The common stock has a market price of $20 per share and the preferred stock has a market value of $90 per share.

1. Prepare the journal entry to record the issuance.

2. Prepare the journal entry to record the issuance assuming the preferred stock has no market price.