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Vaughn Inc. issues 500 shares of $10 par value common stock and 100 shares of $100...

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Accounting

Vaughn Inc. issues 500 shares of $10 par value common stock and100 shares of $100 par value preferred stock for a lump sum of$108,000.

(a)Prepare the journal entry for the issuance when the marketprice of the common shares is $164 each and market price of thepreferred is $205 each.
(b)Prepare the journal entry for the issuance when only the marketprice of the common stock is known and it is $186 per share.

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