Anita Ferreri Corporation 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 what he had learned earlier about corporation accounting. During the first month, the accountant made the following entries for the corporation's capital stock:

\section*{Instructions}
On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.

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May 2 Cash Capital Stock (Issued 12,000 shares of $5 par value common stock 144,000 144,000 at $12 per share) 10 Cash 600,000 Capital Stock 600,000 (Issued 10,000 shares of $50 par value preferred stock at $60 per share)