Blossom Corporation issued 392 shares of $10 par value common stock and 128 shares of $50 par value preferred stock for a lump sum of $17,424. The common stock has a market price of $20 per share, and the preferred stock has a market price of $90 per share. Prepare the journal entry to record the issuance.

The joural entry to record the issuance of the shares is given below.

Explanation:

Fair Market Value:

392 * 20 = 7840  = 40.49%

128 * 90 =  11520  = 59.51%

                 19360

Lump Sum Amount:

Common Stock = $17,424 * 40.49% = 7055

Preferred Stock = $17,424 * 59.51% =  10369

Account Title                                                                     Dr              Cr

Cash                                                                                 17,424

Preferred stock (128 * 50)                                                                 6400

Additional paid-in capital-preferred                                                 3969

Common stock (392x $10)                                                                3920

Additional paid-in capital-common                                                   3135

the law, public safety, corrections, and security cluster prepares people for careers in planning, managing, and providing legal, public safety, protective services and homeland security, including professional and technical support services.

answer; ///blank(1) 75%; blank(2) 40%;