A company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully participating preferred stock, and 750,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
May 5 Exchange 2000 share of Preferred stock of building with a market value of $135,000.
July 20 Sold 1,550 shares of preferred stock for $50 cash par share.
Dec 20 Sold 1,000 shares of preferred stock at$55 cash par share.