Problem:
Markus Industries is authorized by its corporate charter to issue 10,000 shares of preferred stock with a 7% dividend rate and a par value of $10 per share, and 25,000 shares of common stock with a par value of $2 per share. On January 15, 2011, Markus Industries issued 400 shares of its preferred stock for $14 per share and 5,000 shares of common stock for $2.50 per share.
How much total cash did Markus Industries raise through the January 15th 2011 stock issuance?
How are these journal entries recorded?