Diego Corp Received Its Charter and Began Business in 2020

Essay

Diego Corp received its charter and began business in 2020.The company was authorized to issue 20,000,$5,noncumulative preferred shares and an unlimited number of common shares.Prepare journal entries to record the following transactions that occurred during 2020:
$\begin{array}{|l|l|}\hline \text { Sep-01 } & \begin{array}{l}\text { Honoured a } \$ 55,000,12 \%, 120 \text { note payable, in exchange for } 800 \text { preferred } \\\text { shares. }\end{array} \\\hline \text { Oct-12 } & \text { Sold 1,500 preferred shares for } \$ 70 \text { per share, cash } \\\hline \text { Nov-03 } & \text { Sold 2,000 common shares at } \$ 22 \text { per share. } \\\hline\end{array}$