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Question - Pharoah Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $119,000.
Required -
(a) Prepare the journal entry for the issuance when the market price of the common shares is $164 each and market price of the preferred is $205 each.
(b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $208 per share.
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