ABC Inc, was incorporated on 1/15/12. Their corporate charter authorized th following capital stock: Prefered Stock: 7%, Par value $100 per share, 100,000 shares.
Common stock: $1 par value, 500,000 shares.
THe following ransactions occured during the year:
Required:
1. Prepare the journal entry for each transaction listed above.
2. In your own words, explain the main differences between common and preferred stock.