Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $4,000,500
To Common stock $2,540,000
To Paid-In Capital in Excess of Par-Common Stock $1,460,500
(Being issuance of the common stock is recorded)
2. Land A/c Dr $860,000
Building A/c Dr $2,533,000
To Preferred Stock $2,925,000
To Paid-In Capital in Excess of Par-Preferred Stock $468,000
(Being issuance of the preferred stock is recorded)
All other information which is given is not relevant. Hence, ignored it
