Prepare journal entry for the issuance

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Reference no: EM133272775

Chile Corp. issued 2,000 common shares and 400 preferred shares to an investor for $72,000 cash.

1. Prepare the journal entry for the issuance, assuming the par value of the common shares was $5 and the market value was $30, and the par value of the preferred shares was $40 and the market value was $50.

2. Prepare the journal entry for the issuance, assuming the same facts as a), except the preferred shares have no ready market and the common shares have a market value of $24.

Reference no: EM133272775

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