Transcribed Image Text: (Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred

Transcribed Image Text: (Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of
$1
par
value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of
$275,000.
Instructions
(a) Prepare the journal entry for the issuance when the market value of the common shares is $95
each
and market value of the preferred is $60 each.
(b) Prepare the journal entry for the issuance when only the market value of the common stock is
known and it is $90
per
share.

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