Answer: The answer is as follows:
Explanation:
Journal entries are as follows:
For October 31:
Cash (400,000 × $18) $7,200,000
Common stock (400,000 × $10) $4,000,000
Paid in capital in excess of par value-common stock $3,200,000
( record of issuing common stock)
For November 19:
Cash (50,000 × $80) $4,000,000
Preferred stock (50,000 × $75) $3,750,000
Paid in capital in excess of par value-Preferred stock $250,000
( record of issuing preferred stock)
