This problem continues the Haupt Consulting, Inc., situation from Problem 10-51 of Chapt...

This problem continues the Haupt Consulting, Inc., situation from Problem 10-51 of Chapter 10. Alter issuing the bonds in Chapter 10, Haupt decides to rake additional capital for the planned business expansion by issuing 10,000 additional no par common shares for $25,000 and by issuing 1,000, 7%, $100 par preferred shares at $110 per share. Assume that total stockholders' equity is $100,000 and includes 100 shares of common stock and 0 shares of preferred stock issued and outstanding immediately before the above-described transactions. Assume owner Carl Haupt exchanged his existing capital balance and other value for 100 common shares and 0 shares of preferred such that stockholders’ equity is $100,000 immediately before the above transaction.

Requirements

1. Journalize the entries related to the issuances of loth common and preferred shares.

2. Calculate book value per preferred and book value per common share after the issuance.