Chapter 11, Problem 11.12E

To determine

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investor receives a share of profit from the profits earned by the corporation.

Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder before paying dividends to common stockholders is referred as preferred stock.

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders.

To prepare: The correct journal entry for the capital stock transactions of G Corporation.