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Problem
Below are two transactions for Navaho Co.
1. On June 1, Navaho Co. issued 2,000 shares of $5 par common stock for $16 per share.
2. On June 15, Navaho Co. issued 1,200 shares of $5 par preferred stock to acquire a building. The stock is not widely traded, and the current market value of the stock is not evident. The building has recently been appraised by an independent firm as having a market value of $15,000.
REQUIRED: For each of these transactions, record the journal entry that Navaho Company would make.
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