XYZ Corporations articles of incorporation & charter granted by the Minnesota Secretary of State authorize issuance of

100,000 shares of $10 par common stock

50,000 shares of $50 par 6% preferred stock

Using the attached T-account template, prepare the required entries for the following independent transactions.

Issued 500 shares of common stock in exchange for equipment. The equipment was appraised at $7,100; the sellers book value (cost less accumulated depreciation) was $6,200. The most recent market price of the common stock is $16 per share.

Issued 375 shares of common and 100 shares of preferred for a lump sum of $10,800. The common recently sold for $14 per share and the preferred at $65 per share both in active markets.