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Problem 11-5A Novak Corp. has been authorized to issue 20,000 shares of $100 par value, 8%, noncumulative preferred stock and 1,100,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders' equity. Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (4,000 common shares) Retained Earnings Accumulated Other Comprehensive Income $150,000 21,000 1,960,000 1,510,000 40,000 85,000 49,000 The preferred stock was issued for $171,000 cash. All common stock issued was for cash. In November 4,000 shares of common stock were purchased for the treasury at a per share cost of $10. No dividends were declared in 2017. Your answer is partially correct. Try again. Prepare the journal entries for the following. (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.) (1) (2) (3) Issuance of preferred stock for cash. Issuance of common stock for cash. Purchase of common treasury stock for cash. No. Account Titles and Explanation Debit Credit 1. cash 150000 I preferred stock 150000 Paid-in Capital in Excess of Par Value-Preferred St 21000 2. cash 40000 Common Stock 40000 Paid-in Capital in Excess of Stated Value-Common St 3. Treasury Stock 1510000 cash 1510000

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