Answer:
Explanation:
The journal entry to record the issuance of common stock is shown below:
Cash A/c Dr $750,000 (10,000 shares × $75)
To Preferred Stock $500,000 (10,000 shares × $50)
To Additional Paid-in Capital in excess of par - Preferred stock $250,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
While issuing the stock, we debited the cash account and credited the preferred stock and additional paid-in capital account
