**Share Issuances for Cash**Henlay, Inc., issued 10,000 shares of $30 par value preferred stock at $72 per share and 8,000 shares of no-par value common stock at $23 per share. The common stock has no stated value. All issuances were for cash.**a. Prepare the journal entries to record the share issuances.****b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $15 per share.****c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $3 per share.**---### General Journal| Ref. | Description | Debit | Credit ||------|-----------------------------------------------------|-------|--------|| a. | **Preferred stock** | | || | Issued shares of preferred stock. | | || | | | || | **Common stock** | | || | Issued shares of no-par value common stock. | | || b. | **Common stock** | | || | Issued shares of no-par value common stock, stated value. | | || c. | **Common stock** | | || | Issued shares of common stock. | | |This table outlines the journal entries needed to account for share issuances under different scenarios. Each scenario modifies the common stock's characteristics, either with a stated or par value, affecting how the transaction is recorded.

A journal entry is a basic accounting record that is used to chronologically track financial activities inside a company. It usually includes important information including the date, the accounts involved, the sums, and a brief summary of the transaction. Journal entries are the first stage in the double-entry accounting system, and they ensure that every transaction is precisely documented by reflecting equal and opposite changes in accounts. Computation of the journal entry S.no.Account Title and ExplanationDebit($)Credit($)ACash =10000*72Paid in capital in excess of par-Preferred=720000-300000( To record issue of preferred stock)=10000*30Cash =8000*23Common stock( To record issue of common stock)BCash =8000*23Paid in capital in excess of stated value-common=184000-120000Common stock=8000*15(To record issue of stock)CCash =8000*23Paid in capital in excess of stated value-common=184000-24000Common stock=8000*3(To record issue of stock) Final AnswerS.no.Account Title and ExplanationDebit($)Credit($)ACash $720,000Paid in capital in excess of par-Preferred$420,000( To record issue of preferred stock)$300,000Cash $184,000Common stock $184,000( To record issue of common stock)BCash $184,000Paid in capital in excess of stated value-common$64,000Common stock$120,000(To record issue of stock)CCash $184,000Paid in capital in excess of stated value-common$160,000Common stock$24,000(To record issue of stock)